2024-07-04 08:59:12 ET
Summary
- Nvidia stock continues to rise due to generative AI sentiment, formidable market positioning, and the company exceeding expectations.
- Nvidia's performance has prompted comparisons to Cisco during the Dot-Com bubble, but the comparison misses context.
- Nvidia doesn't appear to be in a stock bubble, but is at risk of entering a demand bubble.
- Sky-high expectations for Nvidia and growing risks make the company a hold in my view. Betting against the company remains risky.
Why Does Nvidia Stock Just Keep Climbing?
My previous article on Nvidia ( NVDA ) back in March argued that despite the stock’s meteoric rise, the company’s quality and expected performance were reasonable enough to justify its premium price. Since then, the stock has resumed its upward march nearly 50%, briefly making Nvidia the most valuable company in the world. What keeps fueling such outperformance?...
Read the full article on Seeking Alpha
For further details see:
Nvidia: Growing Risks And Current Valuation Make It A Hold