Nvidia’s Rise: A Dust Bowl Bloom

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Back then, in November of ’22, the company brought in six hundred and eighty million dollars in net income. A respectable sum, enough to keep the lights on and the gears turning. Now? Thirty-nine billion. A leap that outstrips even the rise in share price. But there’s more to it than that. The company has been buying back its own shares, a way of concentrating ownership, of squeezing more value from each remaining piece. It’s like a farmer taking land out of production, making the remaining fields more fruitful.

Last year, sixty billion dollars, a record, went into this program. Another fifty billion announced just this year. It’s a way of boosting earnings per share, of making each piece of the pie a little bigger. The numbers don’t always tell the whole story, but they’re a start.

A Question of Soil

They say a cheap thing isn’t always a good thing. A low price can be a warning, a sign of trouble brewing beneath the surface. Nvidia trades at forty-six times earnings. A premium, to be sure. But not the fever pitch of those days before the dot-com bubble burst, when hope and speculation ran wild. That was a different kind of dust bowl, a barren landscape of broken promises.

Last quarter, Nvidia grew earnings by sixty-five percent. A healthy growth, if it holds. If it continues for a few more seasons, the company will grow into its valuation, and then some. And the analysts? They’ve been surprised, time and again, by the strength of the harvest. My hunch is this company isn’t finished surprising us. There’s more upside left than Wall Street expects, a hidden spring in the dry land. It’s a gamble, of course. All things are. But sometimes, the best things grow in the most unlikely places.

2026-02-13 13:32

A Question of Soil

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