How is that NVDA has gained ~$2,800,000,000,000 in market cap in roughly 18 months?
Shouldn’t an efficient market have seen a 336% gain coming, such that more of the gains were priced in?
Was there no right tail being priced in?
As we will discuss, many analysts on Wall St. fail to see far enough into the technological future to price these right tails in for many companies.
Contrast NVDA with TSLA which sports a valuation roughly 3.5X valuation of the former.
NVDA has been able to rally sustainably over the past 5 years, nearly 1,375% while TSLA is only up about 300%, or a nearly 4.5X return.
I would posit that these things happen because it is hard for humans to comprehend large scale changes in the world. Artificial intelligence is one of the greatest advancements of recent memory.
The benefit of this dynamic is that many companies can outperform much longer than investors expect.
Walton Reads 
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