AI Bubble?

AI Bubble?

Nvidia and other AI related companies have had a surge in profits and share prices. Are we in an AI Bubble or the early stages of the AI transformation? My video has a broader perspective on this. Below is a start at looking at the current details.

There is additional information from the Stanford AI Index 2023. It provides a broad overview of the state of AI. It is published every year in April. This last index was from April 2023.

PEG ratios are price earnings and growth. Price and earnings are known values. Growth estimates involve using analyst forecasts. The analysts may or may not be correct. Stock prices would tend to do better if growth performance is better tahn analysts expect.

Nvidia Share Price Financials as of Today

Nvidia’s PEG (Price earnings Growth) Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate is the 5-Year EBITDA growth rate. As of today, NVIDIA’s PE Ratio without NRI is 74.30. NVIDIA’s 5-Year EBITDA growth rate is 45.00%. Therefore, NVIDIA’s PEG Ratio for today is 1.65.

Meta Shares as of Today

Google

Alphabet (GOOGL) has a PEG ratio of 1.21 as of today, based on a PE ratio of 25.47 and a 5-year EBITDA growth rate of 21.10%.

Microsoft

Microsoft’s (MSFT) PEG ratio is 2.06, based on its 5-year EBITDA growth rate of 18.50%.

Amazon

As of March 25, 2024, Amazon.com (AMZN) has a PEG ratio of 1.56. The PEG ratio is the price-earnings-to-growth ratio, and a good PEG ratio is generally lower than 1.0.

AMD Shares as of Today

AMD PEG Ratio is defined as the PE Ratio without NRI divided by the growth ratio. The growth rate we use is the 5-Year EBITDA growth rate. As of today, Advanced Micro Devices’s PE Ratio without NRI is 125.34. Advanced Micro Devices’s 5-Year EBITDA growth rate is 46.50%. Therefore, Advanced Micro Devices’s PEG Ratio for today is 2.70.

Brian Wang is a Futurist Thought Leader and a popular Science blogger with 1 million readers per month. His blog Nextbigfuture.com is ranked #1 Science News Blog. It covers many disruptive technology and trends including Space, Robotics, Artificial Intelligence, Medicine, Anti-aging Biotechnology, and Nanotechnology.

Known for identifying cutting edge technologies, he is currently a Co-Founder of a startup and fundraiser for high potential early-stage companies. He is the Head of Research for Allocations for deep technology investments and an Angel Investor at Space Angels.

A frequent speaker at corporations, he has been a TEDx speaker, a Singularity University speaker and guest at numerous interviews for radio and podcasts.  He is open to public speaking and advising engagements.

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