NVIDIA Corp NVDA

Nvidia will crash

[Torontojay]

Nvidia will suffer the same fate as Cisco did in the dotcom era. Their stock performance over a 10 year period is eerily similar with dips during the mid term year of the election (October 2022 vs October 1998). Cisco bottoms in October 1998 at around $10 and Nvidia bottoms on October 13 at $113.13 or about a 10 times difference in price. Over the next 17 months, Cisco rises to a peak share price of just over $80 while Nvidia is almost at $800! Just to give you an idea just how big of a bubble Cisco was in, it's market cap today, almost 24 years later, is $197 Billion compared to $560 billion on March 23,2000. 

Cisco was the most valuable company in the S&P 500 during the dotcom era. Today, Nvidia is valued at around $2 trillion and it's only a matter of time before reality sets in and the stock price tumbles. One thing to know about bubbles is that it's difficult to time the turning point. In other words, Nvidia can go on to double over the next year before it eventually crashes hard. History teaches us that these rallies are not sustainable and it would be prudent to cash out and respect the lessons learned from the past. 

https://www.morningstar.com/news/marketwatch/20240221594/wall-street-keeps-likening-nvidia-to-dot-com-era-cisco-is-the-comparison-justified

[MaterialsMan]

When Cisco was a high flyer, you hailed a cab not an Uber. Around the same time, it was said that when you were getting stock tips from the cab drivers on tech stocks that already had 10x to a 100x gains without showing much revenue never mind profit, it was a pretty good signal that tech SPs were a little topsy. Granted, Nvidia is making money. But, the PE is about 100, and getting higher by the

[jboom70]

Fundimentally why? Just saying it's going to crash with no reasoning other than what goes up must come down is rediculous. Do the work and research the space, reasons for SP, continued evaluation raises and risks specific to NVDA and why SP could drop. If you do you can see it has runway left for some time to come. Charted it could easily go to 900's and if the special 6 or whatever the

[Torontojay]

Stocks mean revert over time.  What is it that distinguishes Cisco from Nvidia? The only thing that separates the two is a new breed of investors that have forgotten about the past.  What ever happened to Tesla? It's no longer the most valuable company in the world. Nvidia can have it's 15 seconds to fame, or maybe 15 months, but it will eventually get eclipsed by a new

[jboom70]

No, of coarse this rate of growth is unsubstaiable long term (5-10yrs). But for now the numbers work and are even on the low side. This can easily pump up for the forseable future. Ai is going to be in everyones face in the near future and will touch all sectors. Risk- Taiwan, and AMD puts out a better GPU but that's unlikely as programers want to stick with NVDA language as they have

[jboom70]

Just an example: A story teller describes a movie and it makes a movie. No actors, sets, special effects, nothing just a story teller. Netflix profits will soar, youtube, any film/movie company. Just endless. And yes we will all be out of work.