Prominent Tech Investor: 'When We Were Buying Nvidia in 2023, We Were Paying 4 Times Earnings' - 24/7 Wall St.

In a recent interview, Alex Sacerdote, founder of Whale Rock Capital, revealed his unique investment framework based on the S-curve model for evaluating earnings potential. He noted that when buying N... Read original →

Whale Rock’s 4x P/E bet on NVIDIA reflects a precise call on the inflection point of the AI infrastructure S-curve. Technologically, this accelerates adoption of sub-3nm nodes and EUV lithography in HPC chips, pressuring TSMC (Taiwan, China) to expand CoWoS capacity and boosting demand for upstream materials and equipment. Geopolitically, U.S. export controls shield NVIDIA’s margins short-term but catalyze China’s GPU ecosystem independence, eroding its long-term dominance. In response, AMD and Intel are leveraging open software stacks and custom silicon to win cloud contracts from AWS and Azure—clients eager to reduce vendor concentration. Over the next 12–24 months, the real alpha won’t come solely from chip designers but from enablers of AI scaling: advanced packaging, high-speed interconnects, and thermal solutions—segments with longer, less volatile return tails than GPUs themselves.