Well, it’s been up 10,000% since May 2013 and is now America’s best performing stock of the past decade. Everyone is crazy. This is the biggest news in the market this year. Kramer is now naming her second dog. Jensen Huang’s name is now in the mainstream alongside Bill Gates, Steve Jobs, Mark Zuckerberg, Jeff Bezos and Elon Musk. Everywhere I go people ask me about inventory. No one seems to be talking about anything else.
If you’ve been investing in stocks for some time, you’re now making a lot of money.and read the article Here’s what the Wall Street Journal saysit starts to feel like nothing can stop this story.
That’s why now’s a perfect time to remind us all that stocks trading at 170 times earnings typically don’t reward people making profits at this level. . And it’s an even better time to review some of the biggest risks to this story. Because wherever prices go from here, one of these things is likely to happen sooner or later.
Here are five things that could knock Nvidia down. This comes from my own paranoid imagination, having held stocks for 8 years…
- China invaded/blocked Taiwan (or so it appeared).
- A major technological breakthrough that makes $20,000 GPUs unnecessary for the future of AI.
- Governments ban ChatGPT or similar technologies in any country.
- Sudden product failure or chip recall.
- Intel/AMD team up and/or AI chips from Apple, Amazon, Google and Microsoft go public.
These are the ones I can image. What am I missing? I’m sure there are others.
At the moment, there seems to be endless demand for the best GPUs as far as the eye can see, and NVIDIA is the “only arms dealer” in the world who can supply them. How likely is it that this situation will continue indefinitely? Not very often, according to history.
I’m not trying to kill anyone’s topic. I’m just thinking out loud.Be careful pouring the following oil Jesus Stock. There will always be unexpected events that have never happened before.