By Alex Sirois
Publication Date: 2026-05-28 13:33:00
Quick Read
Nvidia (NVDA) trades at a P/E of 33 and price-to-book of 27 with 50% of Data Center revenue from a handful of hyperscalers. Berkshire Hathaway (BRK-B) trades at a P/E of 10 with a fortress balance sheet that generates $3.73% free cash flow yield and benefits from higher interest rates through its Treasury holdings.
Fed Chair Kevin Warsh signaling an end to cheap-money policy and higher capital costs is punishing expensive mega-cap tech multiples while rewarding Berkshire’s diversified cash engines across insurance, rail, and utilities that generate durable earnings independent of the AI cycle.
The analyst who called NVIDIA in 2010 just named his top 10 stocks and Berkshire Hathaway wasn’t one of them. Get them here FREE.
Everyone is piling into NVIDIA (NASDAQ:NVDA) after another blowout quarter that pushed revenue to $81.61 billion and the market cap past $5.14 trillion, and the AI hype machine keeps printing headlines about agentic compute and unstoppable hyperscaler spend.
The underlying setup deserves a closer look.
The Crowded Trade Nobody Wants to Talk About
NVIDIA is the most concentrated bet on the planet. At a trailing P/E of 33 and a price-to-book of 27, you are paying peak-cycle prices for a chip business whose largest customers are openly building competing silicon. Roughly 50% of Data Center revenue flows from a handful of hyperscalers (Meta, Microsoft, Google, Amazon), China compute is excluded from forward guidance…
