NVIDIA stock is part ownership in an incoming producing business. They generate cash flow by producing and selling goods. You can actually determine a value of the business and the shares of it. The speculation comes in traders determining the future value of the company and those shares, but the actual business itself has intrinsic value. If you owned all of it tomorrow, you'd be one of the wealthiest people in history.
He has a number on a screen that says that he can sell that share at a price. He doesn't own any rights to any cash flow because that's determined by a Board to which his vote doesn't matter. And the stock price isn't determined by future cash flows only the speculation of estimates of those future cash flows and the only way that he makes any money on his ownership is if he's able to get someone to buy his ownership at a higher price than he paid and that the value of the underlying currency that he paid for that ownership didn't devalue considerably since he bought it which it has. He gets a dividend, but presently that dividend isn't keeping up with the devaluation of the currency that he used to purchase the right to look at the number on the screen.
Do NVIDIA shares have an intrinsic value? Any dividend can be taken as cash or reinvested into more shares.
How do you define intrinsic value? And how does that definition relate to shares of NVIDIA?
The value of an asset based on future expected cash flow. If you are capable of calculating the intrinsic value, you can compare that to the price the shares are trading at to determine whether it is undervalued/overvalued by the market.
They have as much intrinsic value as bitcoin.
