ChatGPT-4o Reveals: NVIDIA Pays $315k per Employee in Stock Options

Recently, a mid-level NVIDIA employee retired with $62 million from stock options. How? By maxing out the employee stock purchase plan using 15% of their salary buying stock at a 15% discount, in addition to the high salary and stock options.

The Magnificient Seven have dominated the returns of the stock market for a decade or so:

• NVIDIA
• Microsoft
• Tesla
• Meta
• Alphabet
• Apple
• Amazon

In today’s YouTube video, ChatGPT-4o analyzes the seven most recent quarterly SEC filings to find some golden gems like how much employees make in stock options:

I’ve also prompted it to give us some valuations (discounted cash flow and P/E based) and a series of interesting insights. Based on the recent filings, it believes the Mag Seven are overvalued.

Prompts used:

 Prompt 1:
can you figure out for each of those companies how many stock options they give out to employees and how many employees there are so we can estimate how many stock options (in USD) are given per employee. Provide a table please. 

 Prompt 2:
Please find six recent quarterly filings of NVIDIAs competitors and customers. Please find clues in the recent quarterly filings of tech giants whether they'll increase or decrease their spent for NVidia products in the upcoming quarter or year 2024. 

 Prompt 3:
Based on the capex numbers try to estimate for each of these companies how much they'll spend in 2024 on NVDA.

 Prompt 4:
Calculate a DCF valuation for each of those tech giants and provide their fair value in a table. Come to your own conclusions on 10y growth rates based on the qualitative and quantitative information in the reports. Give all assumptions used for the DCF. Also give their current revenue and net income numbers. Also give their most recent growth rates. 

 Prompt 5:
Value each of these companies based on an appropriate P/E ratio. Use your common sense to determine an appropriate P/E ratio for each company (based on your implicit and explicit information).

 Prompt 6:
Now find the current market caps and provide an estimation on how much you believe they are under- or overvalued as a separate table

 Prompt 7:
In a table provide the cash each of these companies have.

Also check out our related blog:

NVIDIA Q1/2024: Top Earnings Takeaways (AI Factories, SovereignAI, Self-Driving, Robotics)

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