Re:Nvidia is now worth $102M per employee
by gizajob on Friday June 07, 2024 @03:12PM
(#40611898)
Brilliant. Thanks for posting. Actually quite a good metric for thinking about valuation, ie it’s 5x what it should be right now.
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I think about it the other way. Businesses with high $/revenue per employee, high margin, etc. tend to be fundamentally better managed and more robust.
I'm not claiming that applies to Nvidia either way specifically, but it's a good sign in the generic:
1. They're efficient.
2. They've avoided the curse of overhiring (hi, Google!)
3. They can stay afloat even if business drops a lot.
But this article is about market cap not revenue. But even revenue is almost meaningless for the things you mention -- it's profit per employee which would be interesting. And for that, tech companies are nowhere near the top.
Check this https://airleasecorp.com/press/air-lease-corporation-announc... they made 753.6M in 2023 with 163 employees or 4.6M per employee. No one comes even close. No one.
I believe Fannie Mae is the second who made 17400 with 8100 people or 2.17M per employee.
To compare, nVidia made 4368 with 29600.
Tether beats your example by 10x or $45m profit per employee.
Probably the Sicilian mob too. So what? Criminal enterprises do not count.
Re:Nvidia is now worth $102M per employee
by shawabawa3 on Friday June 07, 2024 @05:13PM
(#40613058)
If you take their latest quarters results ($6B profit) you get $220k/employee per quarter or $880k/year
Interesting. Yeah would be cool to look at profit
Re:Nvidia is now worth $102M per employee
by scottiebarnes on Friday June 07, 2024 @05:09PM
(#40613014)
Or here's another perspective:
Remember the point of "AI" is getting human-like productivity out of machines.
So should it be surprising that the company at the forefront of this is has a low human-to-everything ratio?