One signal

Screaming buy or AI bubble? Harvey Jones, a shareholder, runs the numbers and lands on neither. The world's biggest company, worth about $5.1trn, has watched the stock climb 869% in five years yet just 21% in twelve months.

Why it matters

The business beneath shows no wobble on his figures: quarterly revenue of $96.2bn, up 106% year on year, net income up 126% to $59.7bn, and gross margins of 75%, against Tesco's 3% to 4%. The P/E has fallen from 43 to 26.8. His verdict is hold rather than add: the 0.5% yield is no comfort, and the risks he names include rates, China, customers building their own chips and circular financing. His next purchase is earmarked for the FTSE 100. The column runs on Yahoo Finance UK.

Discuss: Nvidia's profits grew 126% while its shares managed just 21% in a year. Is that the market pricing in an AI bust, or simple arithmetic on a $5trn company?

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