Nvidia’s run has been so remarkable that the market now believes the company is worth more than $100 million per employee....

I know this is more business than tech related, but for some reason I am not able to post it to the business community, so I’m posting it here.

"…For Nvidia, after this latest run-up took it north of the $3T milestone, the company is being valued at more than $100M for each of its 29,600 employees (per its filing that counted up to the end of Jan 2024).

That’s more than 5x any of its big tech peers, and hundreds of times higher than more labor-intensive companies like Walmart and Amazon. It is worth noting that Nvidia has very likely done some hiring since the end of January — I think the company might be in growth mode — but even if the HR department has been working non-stop, Nvidia will still be a major outlier on this simple measure.

We are running out of ways to describe Nvidia’s recent run… but a nine-figure valuation per employee is a new one."

  • OpticalMoose@discuss.tchncs.deEnglish
    851·
    5 months ago

    At least the article points out that this is a Wall Street valuation, meaning it’s meaningless in reality, the company doesn’t have that much money, nor is it actually worth that much. In reality, Nvidia’s tangible book value (plant, equipment, brands, logos, patents, etc.) is $37,436,000,000.

    $37,436,000,000 / 29,600 employees = $1,264,729.73 per employee

    Which isn’t bad considering the median salary at Nvidia is $266,939 (up 17% from last year).

    • iopq@lemmy.worldEnglish
      149·
      5 months ago

      Book value doesn’t take into account future value, wall street value does

      • yeahiknow3@lemmings.worldEnglish
        401·
        5 months ago

        Meaning speculation. Just because someone is willing to buy Nvidia stock at a $3 trillion valuation doesn’t mean it will someday achieve that kind of tangible value.

          • yeahiknow3@lemmings.worldEnglish
            1·
            5 months ago

            You don’t have to believe in objective tangible value. However, there’s clearly a difference between a vegetable farm and a cryptocurrency. The former makes something and provides services. The latter does not. These are extreme examples of market and value distortion. The very existence of crypto is a nail in the coffin of the neoliberal theory about rational markets.

          • Funderpants @lemmy.caEnglish
            1·
            5 months ago

            Ish, over the medium to long term Nvidia will have to start paying dividends that align with the cost of the share. Otherwise the market will leave for better paying, lower cost stocks.

    • technocrit@lemmy.dbzer0.comEnglish
      11·
      5 months ago

      At least the article points out that this is a Wall Street valuation

      Market cap is not just a “Wall Street valuation” (whatever that means).

      meaning it’s meaningless in reality

      Tell that to the stockholders.