The chipmaker’s high “price to sales” ratio reflects investor enthusiasm around its growth prospects. But relying on that metric created trouble during the dot-com boom.
Wall Street is closely watching the semiconductor giant’s earnings report, as questions swirl over its massive stock market valuation on the back of the boom in artificial intelligence.
Profits are up and the economy is strong. But the tech industry faces two challenges — dealing with a frenetic work force expansion in the pandemic and building A.I.