>>105990292thats not what happens
its all speculation,
in other words:
how much OTHER people want your share
and how they imagine the value of the share will go up
its totally and entirely decoupled from the actual value of the company, or what it does
in fact
60B revenue means nvidia doesnt hold its own shares
which they should
bc you can leverage even that as collateral to get loans
or maybe they dont need loans
bc their actual company value is ~100-200 millies and they earn 600x their value each year
which is what you would expect from a well led company btw
think of it this way:
a company has a welding machine at its disposal
it costs lets say 500 bucks bc its a deluxe welding machine
with their first job they make 3000
and now extrapolate that throughout the year
its expectable that a company does multiple orders of magnitude more in revenue than their actual worth
but thats "hard worth" im talking about
the money liquidators can get out of a company if it bankrupts
thats the value of a company
the 4.2T? thats the shares. completely out of control for the company, and they dont earn a cent on that. or they would have revenues in the bilions
4.2 TRILION market cap may i remind you
if they earn 1% of their market cap thats 40 bilion