Prominent Tech Investor: ‘When We Were Buying Nvidia in 2023, We Were Paying 4 Times Earnings’ - Yahoo Finance

Prominent investor Alex Sacerdote revealed that Whale Rock Capital paid a 4x earnings multiple for NVIDIA in 2023, based on projected future earnings rather than current P/E ratios. His investment fra... Read original →

Whale Rock’s 4x forward P/E bet on NVIDIA reflects a calculated capture of the AI infrastructure S-curve inflection point. This move accelerates upstream adoption of advanced packaging and HBM3e memory, pressuring TSMC and Samsung to expand CoWoS capacity, while forcing cloud providers to shift CAPEX from general-purpose to AI-optimized clusters. Geopolitically, tightening U.S. AI chip export controls inflate global supply chain redundancy costs, heightening compliance burdens for foundries in Taiwan, China. In response, AMD and Intel are countering NVIDIA’s ecosystem dominance via open software stacks and custom ASICs, while Google and Amazon accelerate in-house TPU rollouts. Over the next 18 months, valuation metrics will pivot from revenue multiples to ‘dollars per watt of usable AI compute’—rewarding early movers but exposing sharp downside if architectural bets falter.