The One Number That Makes Nvidia King of Tech
How North Tech Capital finds compounders. Hint: earning power, not price targets, is the edge.
They all want the crown.
But there’s one reason Nvidia wears it. One reason its competitors fight for scraps.
No, it’s not just Jensen Huang’s epic leadership (though that helps).
It’s this: earning power.
Not clicks. Not hype. Not AI conference headlines.
Cold, compounding, repeatable earnings growth.
And when you understand that, you’ll never look at tech stocks the same way again.
How We Find the Winners
At North Tech Capital, we run the Global Tech 15 — a concentrated portfolio of the world’s best tech businesses.
But first, every name must pass this filter:
✅ Large-cap
✅ Technology
✅ Durable earning power
Earning power is what moves the needle. Not news flow. Not conference headlines.
It’s the ultimate weapon in stock selection.
Nvidia vs. Everyone Else
Now here’s the number Wall Street often ignores: 7-year compound earnings growth (CAGR).
Look at Nvidia’s earning power vs its peers:
Nvidia: 91.8%
Netflix: 38.8%
Amazon: 36.9%
Broadcom: 14.8%
Alphabet: 27.4%
Microsoft: 18.4%
Apple: 17.8%
Meta: 30.3%
Tesla: 1.80%
Spot the outlier?
Earning Power vs. Price Targets
But here’s the hard question:
How can you determine Nvidia’s (or any stock’s) future earnings as dependable?
Graham & Dodd raised this same question in 1934 — and it still applies today:
“It is not sufficient to know what the past earnings have averaged, or even that they disclose a definite line of growth or decline. There must be plausible grounds for believing that this average or this trend is a dependable guide to the future.”
And even then, they caution:
“...the concept of ‘earning power’, expressed as a definite figure, and the derived concept of intrinsic value, as something equally definite and ascertainable, cannot be safely accepted as a general premise of security analysis.”
Their point is critical.
👉 Intrinsic value need only be adequate to justify the purchase of a stock
👉 Or show that its value is considerably higher (or lower) than the market price
You do not need precision — you need a durable edge.
Does Nvidia Still Qualify?
Right now — yes.
The proof is in the demand.
Every major cloud provider is fighting for Nvidia’s new Blackwell chips — $30k to $70k a piece.
Nvidia have already shipped 13,000 of them, and will ship another 18,000 to Saudi Arabia.
CEO Jensen Huang says demand is “insane.”
Analysts say AI capex is accelerating — not slowing.
This is not backward-looking. It is present tense — and forward-driving.
When the demand cools, earnings growth will too. And at that point, so will Nvidia’s earning power.
But we are not there yet.
The Lesson
Price targets aren’t an edge.
Earning power is an edge.
And it’s the lens that helps you cut through noise, cycles, and hype — and build portfolios that compound through cycles, while Wall Street chases headlines.
It’s why Nvidia is #1 in the Global Tech 15 today.
And why we’ll keep tracking earning power — relentlessly.
If you want to join a growing community of investors compounding smarter with the world’s best tech stocks — check out the NTC Global Tech 15.
You’ll get:
✅ Full access to our 15-stock portfolio — built to outperform over time
✅ Real-time updates on allocations & trades
✅ Weekly insights to sharpen your tech investing edge
✅ Access to an exclusive community of serious tech investors
Skip the noise. Compound with conviction.