On: Nvidia announces financial results for second quar...

[TheAlchemist]

Capitalization in itself is meaningless. If you have 50% of NVidia outstanding shares, and you try to sell 10% of that, the capitalization would crater.

What really counts is the profit. It is pretty huge now, but not 'that' huge (at least yet).

[creer → TheAlchemist]

Try and buy 10% and see what happens!

Your point stands but in both directions: The market cap is not "the value of the company" as in, you can neither buy it or sell it at that price.

[mortehu → TheAlchemist]

Historical acquisition premiums give you a distribution of what you can expect to pay for the whole company given the market cap.