Nvidia sales growing so fast that Wall Street can't keep up

Hard to calculate stock's value because no one can figure out what chipmaker's revenues will be

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Nvidia is the most expensive stock in the S&P 500 Index, with its shares trading for roughly 23 times the company’s projected sales over the next 12 months.

But there is a problem with that valuation. In the age of the artificial intelligence (AI) boom, no one can figure out what the chipmaker’s revenues are actually going to be – not the Wall Street analysts covering Nvidia or Nvidia executives themselves. So how are investors supposed to calculate whether the shares are expensive or not?

For more than a year now, a surge in demand for Nvidia’s chips sparked by the frenzy surrounding AI has made a mockery of Wall Street’s quarterly financial estimates. Analysts are not making up numbers, they take their cues from management, like they do with every other company. However, even Nvidia’s leadership is struggling to anticipate how much money the chipmaker will generate three months into the future.