Nvidia's 'structural challenge' is return on its own investments

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Nvidia's 'structural challenge' is return on its own investments
Stacy RasgonStock SplitsMarket Domination
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Nvidia (NVDA) will execute a 10-for-1 stock split after the market close, making the stock more affordable to investors. Bernstein Managing Director and...

) will execute a 10-for-1 stock split after the market close, making the stock more affordable to investors. Bernstein Managing Director and Senior Analyst Stacy Rasgon joins Market Domination to discuss how the split will impact the company and break down any potential headwinds that lay ahead.

Um And there's a lot to say about that, but before we talk about that, let's let's talk about the split and whether you are also factoring this in as a potential catalyst.So fundamentally, it should mean nothing as we know in practice, you know, there is a, I guess for a lot of these stocks, there is increasingly a retail presence and to the extent that it makes it more attractive for retail.

The next time I publish a model, I will publish a corrected one and, and the only impact there is I'll, I'll increase my share count by 10 X which would reduce my eps by 10 X.I don't have to do very much except change one line in the model next time I publish the actual model. And like, you know, we, we can argue about cyclical air pockets like digestion and that like that, that's fine.I think the structural worry would be, you know, over the long term, like there's a lot of money that's getting spent and there has to be a return on that investment, either driving revenues for, for customers or driving efficiencies and saving costs.

It, it's the, the actual buy side, the investors numbers which tend to be higher typically than, than, than the Wall Street analyst that you sort of see on, on, on the screen. Stocks are about to hit a 'wall of money' that will drive the market to record highs in July, Goldman Sachs says

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