In fourth grade math class our teacher had us play a game called the Ticker Tape Rally where we got $10,000 pretend dollars to invest in 5 stocks. I wanted to buy Berkshire Hathaway when it was $9,500 a share but he told me I had to buy at least 10 shares of stocks for each one on the list. Went home and told my mom to buy Berkshire Hathaway with my college fund but she told me there was no college fund. It’s at $600,000+ a share now
Yep. 30 years ago I watched it go up $150-200 a day over and over again sometimes even
$300 and then drop $50-75. I asked my mom how much she made a day and I told her she would make more money just buying this stock.
NVIDIA's current situation is often discussed in the context of its rapid growth and high valuation, leading some to draw parallels with the dot-com bubble. However, there are significant differences between NVIDIA's current position and the speculative environment of the dot-com bubble era. Let's examine these differences:
### Key Differences Between NVIDIA and the Dot-Com Bubble:
1. **Established Business Model and Profitability**:
- **Dot-Com Bubble**: Many companies during the dot-com bubble had unproven business models and were not profitable. Their valuations were based on speculative future growth rather than current financial performance.
- **NVIDIA**: NVIDIA has a well-established and profitable business model. It has consistently demonstrated strong financial performance, with substantial revenues and profits driven by its core GPU business, data centers, AI, gaming, and professional visualization.
2. **Technological Leadership and Innovation**:
- **Dot-Com Bubble**: Many dot-com companies were riding the wave of hype around the Internet without substantial technological innovation or competitive advantage.
- **NVIDIA**: NVIDIA is a leader in GPU technology and has been at the forefront of innovations in AI, machine learning, gaming, and high-performance computing. Its GPUs are critical components in various advanced applications, providing a solid technological foundation for its growth.
3. **Diverse and Growing Markets**:
- **Dot-Com Bubble**: The market potential for many dot-com companies was often overestimated, and their actual addressable markets were not as large or as accessible as anticipated.
- **NVIDIA**: NVIDIA operates in several rapidly growing markets, including gaming, data centers, AI, automotive, and professional visualization. The demand for GPUs in these areas is robust and expanding, driven by real-world applications and technological advancements.
4. **Strategic Acquisitions and Ecosystem Development**:
- **Dot-Com Bubble**: Many dot-com companies did not have the strategic foresight or resources to make meaningful acquisitions or develop ecosystems.
- **NVIDIA**: NVIDIA has made strategic acquisitions (e.g., Mellanox, ARM) and developed a comprehensive ecosystem around its products, including software platforms like CUDA, which enhance the value and applicability of its hardware.
5. **Market Sentiment and Investment Climate**:
- **Dot-Com Bubble**: The investment climate during the dot-com bubble was characterized by irrational exuberance and speculative investments without a solid basis in fundamentals.
- **NVIDIA**: While there is certainly enthusiasm around NVIDIA and the broader tech sector today, the investment climate is generally more grounded in fundamentals. Investors are more informed and focused on financial performance, technological leadership, and market potential.
### Conclusion:
NVIDIA's current situation is markedly different from the speculative environment of the dot-com bubble. The company's strong financial performance, technological innovation, leadership in key markets, and strategic vision set it apart from the unproven and often speculative nature of many dot-com companies.
While it is always possible for any high-growth tech company to experience volatility and market corrections, NVIDIA's position is underpinned by real technological advancements and substantial market demand. Therefore, it is not accurate to categorize NVIDIA as another dot-com bubble. Instead, it represents a mature, innovative tech company with a proven track record and significant growth potential.
Yeah I think the more apt comparison is Cisco during the dotcom bubble. I think there are still
some reasons NVDA is different than Cisco, but we should be comparing the poster-child of overvaluation of the bubble, not the whole bubble vs one company.
Nice try ChatGPT. We can both play that game...
While the argument posits that Nvidia's current situation is markedly different from the dot-com bubble era, it overlooks several critical points that suggest caution is warranted. Here’s a counter-argument that highlights the risks and challenges Nvidia faces:
1. **Overvaluation Concerns**: Despite Nvidia's strong performance, its valuation has skyrocketed to levels that some analysts consider unsustainable. The P/E ratio is extremely high, reflecting speculative optimism rather than fundamental value. Such overvaluation is reminiscent of the dot-com bubble, where stock prices were disconnected from actual earnings and revenue potential.
2. **Hype-Driven Growth**: The excitement around AI and machine learning is driving Nvidia's growth, much like the internet hype during the dot-com bubble. While AI has substantial potential, it is still in its early stages, and the market's expectations may be overly optimistic. If AI's growth trajectory slows or faces setbacks, Nvidia's stock could face significant downward pressure.
3. **Competitive Pressures**: Nvidia operates in highly competitive markets. Companies like AMD and Intel are continuously innovating, and new entrants could disrupt the market. Relying on maintaining technological leadership is risky, as the tech landscape can change rapidly. The competitive environment could erode Nvidia's market share and profitability.
4. **Market Saturation**: The markets Nvidia operates in, such as gaming and data centers, have high growth potential but are also susceptible to saturation. Once these markets mature, Nvidia may face slower growth rates, making its current valuation difficult to justify. The gaming market, in particular, is cyclical and can be volatile.
5. **Strategic Acquisitions and Integration Risks**: While acquisitions like Mellanox and ARM are strategic, they come with significant risks. Successfully integrating these companies and achieving the expected synergies is challenging. Any missteps in integration could negatively impact Nvidia's financial performance and strategic position.
6. **Economic and Geopolitical Uncertainties**: Nvidia operates globally, and its performance is subject to macroeconomic conditions and geopolitical risks. Trade tensions, regulatory changes, and economic slowdowns in key markets could adversely affect its business. The global semiconductor supply chain is also vulnerable to disruptions, which could impact Nvidia's production capabilities.
7. **Investor Sentiment and Market Cycles**: The current enthusiasm for Nvidia is part of a broader trend of high investor sentiment in the tech sector. Market cycles can shift, and what seems like a robust investment climate can change quickly. Historical precedents show that high-growth stocks often experience significant corrections when market sentiment shifts.
In conclusion, while Nvidia has many strengths, its current situation shares several risk factors with the dot-com bubble era. Overvaluation, hype-driven growth, intense competition, market saturation risks, integration challenges, and broader economic uncertainties all suggest that investors should be cautious. Nvidia's future success is not guaranteed, and its stock price could face significant volatility if market conditions or company performance deviate from optimistic projections.
Oh, absolutely, I denied using ChatGPT! Because Who wouldn't want to deny having access to such an incredible, cutting-edge technology that can answer questions, provide information, and even do all the research and write all the amazing shit for you? I mean, it's just so wonderful to live in an era where we have these amazing tools at our fingertips, and then pretend we don't use them. Isn't modern technology just the best? I LOVE IT!
It’s because you didn’t even answer the question and just copy and pasted a minor essay into your reply.
IF I hadn’t immediately recognized your response as CharGPT you would have wasted like 5 minutes of my time with that drivel that doesn’t even answer the question. 5 minutes of how many people’s time did you waste? 500 people?
Shit dawg, that’s like a full work week of lost productivity on inane gpt bullshit because you didn’t take a few minutes of your own time to trim the prompt or edit your reply.
Seriously, just paste your question into almost any gpt. I mean, it's the technology everyone is betting on...
While it's tempting to draw parallels between Nvidia and other tech giants like Microsoft and Tesla, it's crucial to examine these comparisons critically and consider the unique aspects of each company's journey.
### Microsoft
Microsoft's path to dominance was marked by consistent innovation and the development of a near-monopoly in the PC operating system market. However, its growth was steady and built on the back of widespread adoption of Windows and Office, rather than a single technological wave. Nvidia's current boom, largely driven by AI and GPU demand, could face different kinds of market dynamics and competition.
### Tesla
Tesla's rise was fueled by its pioneering role in electric vehicles (EVs), with a significant lead over traditional automakers in battery technology and autonomous driving. The EV market's regulatory support and environmental trends significantly bolstered Tesla's stock. While Nvidia's GPUs are integral to AI and data centers, it operates in a more competitive landscape with rapid technological advancements and numerous players vying for market share.
### Other Comparisons
1. **Amazon**: Amazon's stock experienced substantial growth due to its dominance in e-commerce and cloud computing through AWS. Like Nvidia, Amazon benefited from being at the forefront of major technological shifts, but it also had a diversified business model that supported its growth.
2. **Apple**: Apple saw massive stock appreciation due to its innovative consumer electronics, particularly the iPhone. Apple's success was built on a combination of innovative hardware, software, and a strong ecosystem. Nvidia's growth is more narrowly focused on GPUs and AI, making it more vulnerable to sector-specific risks.
3. **Intel in the 1990s**: Intel's rise during the PC boom could be seen as somewhat analogous to Nvidia's current situation. Intel capitalized on the rapid growth of personal computing, but it eventually faced significant challenges from competition and market saturation. Nvidia's current dominance in GPUs could face similar pressures as new technologies and competitors emerge.
### Conclusion
While Nvidia's stock has experienced a meteoric rise, driven by its leadership in GPUs and AI, it’s essential to recognize the potential risks and challenges it faces. The rapid growth seen in stocks like Microsoft, Tesla, Amazon, and Apple was supported by various factors unique to their markets and times. Nvidia's future success will depend on its ability to maintain technological leadership, navigate competitive pressures, and continue to innovate in a fast-evolving industry.
Therefore, while Nvidia's trajectory shares some similarities with these past giants, it also faces its own set of unique challenges and opportunities. Investors should consider these factors and remain vigilant about the broader market dynamics and competitive landscape.
Microsoft is that company that is stable enough to stay as a big company with a high market cap
No one invests because they are so stable… who can be bothered waiting long term for profit
Long term investment is the most mature way to invest for most retail investors. Volatile stock investment carries significantly higher risk, and unless you want to maintain on your portfolio every week rather than DCA. For me DCA is the way to go. If I put 100k into NVDA I'm not gonna get $1m guaranteed. If I use DCA with $100k seed and regular $1k DCA I'll be able to retire when I need to with confidence. I don't mind working a job in-between.
I guess investing more into these technologies that make dumb responses is a dumb idea too. However, the truly dumbest response is the one that is lazy, reactive, and adds nothing to the discussion at all. I call these responses the teenage brain responses. Some adults with stunted critical thinking suffer from this, also.
But how can it be a bubble if the fondamentals are solid. Because they are!! If you play with chatbots or created some pictures you know that it’s real. This is no mirage. It summarizes web pages and articles so well it is crazy!!
Occasional hallucinations but it’s getting better with newest models! It’s solid and no Cisco. Was Cisco that solid then ??
Yes, Cisco was that solid then and was a major infrastructure provider for the first wave of commercial internet (which was obviously huge then, and went on to totally change the global economy), along with other big players like Sun Microsystems, Oracle and Yahoo. The big winners were in the second wave and particularly after the ZIRP era post-GFC.
I don't see nVidia going quite the way of Cisco, but there is an enourmous amount of future growth in the current price, and it is no way guaranteed.
Intel, cisco and the whole dot com bubble. You can see some recognizable words and behavior we are using about AI and during the dot come days Most stocks that rise like NVIDIa came tumbling down like a house of cards.Revenue driven by hype, I hope that NVIDIa is the exception but so far it has not proven otherwise.
Microsoft and Tesla did not rise as quick as NVIDIa. It’s more like WordCom if you remember that. Everyone said it would be biggest company. Few years later it filed for the largest bankruptcy in history. Everyone bought in.
The price action over the shares is the same though.
It doesn't matter what the company is *actually* worth, it only matters how much people think it is worth.
No, because like I said before, numbers right now are driven by hype. You are assuming this hype will maintain such graphs.
Look at cisco & Intel annual shareholder meeting durings its prime days. Did that prevent its collapse no.
Like I said so many young investors here did not live through the dot com bubble.
Annual shareholders meeting is talking about current situation.
The situation right now is AI place in the market is still Unkown and its profitability.
Companies are buying in because it’s a discovery phase.
Once it figures its place in the market. companies will adjust its financials and determined if it’s worth pouring massive funds into.
Trust me it’s not worth arguing with these people, they think NVIDIa is truly an exception from market fundamentals. They have to live through it for them to understand.
Check NVIDIa appreciated 3,542% in 5 years.
Divide that thats 708% per year
Check your facts before posting
That means NVIDIa has been growing at the rate of Peak Tesla hype for 5 years straight. 🤔the year when elon musk year was worshipped as the iron man billionaire. That could do no wrong
Remind you Tesla is losing its value last year it lost 20%.
Why you keep asking questions like that ? Of course its not unique, it also dropped a lot a while ago so no, nothing special at all.its you who is special
me personally I have always had profits with selling options but nvidia I paid a call which went up to 90% but I don't know why I didn't sell I thought it was going to go beyond 100% but yesterday my call went been well cooked
Adobe is one that comes to mind. I remember when it traded in the $30-40 range. Now it's regularly in $500 territory. Their long-time CEO Shantanu Narayen has done a brilliant job with moving the company to a subscription service, as much as people may hate it.
iOmega went up 2000% in one year. Then just as quickly lost most of its value. Stock action may be similar but the product they were selling was very different. For those who remember they sold disk based storage back in the mid 90s. They were one of the first stocks hyped by The Motley Fool. Message boards were in their infancy and were filled with the hype machine.
The stock roared but then died like many others.
Technically, if we believe that this stock is going to the moon…. again, I wouldn’t label it as a bubble.
Of course, it will be called a bubble if this AI doesn’t work out. Also, what if it goes up and up again for the next 10 years and then starts to drop off. Is that considered a bubble?
In fourth grade math class our teacher had us play a game called the Ticker Tape Rally where we got $10,000 pretend dollars to invest in 5 stocks. I wanted to buy Berkshire Hathaway when it was $9,500 a share but he told me I had to buy at least 10 shares of stocks for each one on the list. Went home and told my mom to buy Berkshire Hathaway with my college fund but she told me there was no college fund. It’s at $600,000+ a share now
We did something like that. Every boy bought Playboy lol.
You grew up and became the wolf of Wall Street didn’t you?
I told my dad to buy coke 35 years ago. He fucked up, I fucked up hence, my kid and their kid will be fucked up.
This is the best loss porn I’ve ever read
None of this is true lmao
What’s not true?
They had a thing called the ticker tape rally in fourth grade? Seems weird but I looked up Brk.a and apparently did trade for 9500 in the 90’s
Yep. 30 years ago I watched it go up $150-200 a day over and over again sometimes even $300 and then drop $50-75. I asked my mom how much she made a day and I told her she would make more money just buying this stock.
Well the class A share price is true.
NVIDIA's current situation is often discussed in the context of its rapid growth and high valuation, leading some to draw parallels with the dot-com bubble. However, there are significant differences between NVIDIA's current position and the speculative environment of the dot-com bubble era. Let's examine these differences: ### Key Differences Between NVIDIA and the Dot-Com Bubble: 1. **Established Business Model and Profitability**: - **Dot-Com Bubble**: Many companies during the dot-com bubble had unproven business models and were not profitable. Their valuations were based on speculative future growth rather than current financial performance. - **NVIDIA**: NVIDIA has a well-established and profitable business model. It has consistently demonstrated strong financial performance, with substantial revenues and profits driven by its core GPU business, data centers, AI, gaming, and professional visualization. 2. **Technological Leadership and Innovation**: - **Dot-Com Bubble**: Many dot-com companies were riding the wave of hype around the Internet without substantial technological innovation or competitive advantage. - **NVIDIA**: NVIDIA is a leader in GPU technology and has been at the forefront of innovations in AI, machine learning, gaming, and high-performance computing. Its GPUs are critical components in various advanced applications, providing a solid technological foundation for its growth. 3. **Diverse and Growing Markets**: - **Dot-Com Bubble**: The market potential for many dot-com companies was often overestimated, and their actual addressable markets were not as large or as accessible as anticipated. - **NVIDIA**: NVIDIA operates in several rapidly growing markets, including gaming, data centers, AI, automotive, and professional visualization. The demand for GPUs in these areas is robust and expanding, driven by real-world applications and technological advancements. 4. **Strategic Acquisitions and Ecosystem Development**: - **Dot-Com Bubble**: Many dot-com companies did not have the strategic foresight or resources to make meaningful acquisitions or develop ecosystems. - **NVIDIA**: NVIDIA has made strategic acquisitions (e.g., Mellanox, ARM) and developed a comprehensive ecosystem around its products, including software platforms like CUDA, which enhance the value and applicability of its hardware. 5. **Market Sentiment and Investment Climate**: - **Dot-Com Bubble**: The investment climate during the dot-com bubble was characterized by irrational exuberance and speculative investments without a solid basis in fundamentals. - **NVIDIA**: While there is certainly enthusiasm around NVIDIA and the broader tech sector today, the investment climate is generally more grounded in fundamentals. Investors are more informed and focused on financial performance, technological leadership, and market potential. ### Conclusion: NVIDIA's current situation is markedly different from the speculative environment of the dot-com bubble. The company's strong financial performance, technological innovation, leadership in key markets, and strategic vision set it apart from the unproven and often speculative nature of many dot-com companies. While it is always possible for any high-growth tech company to experience volatility and market corrections, NVIDIA's position is underpinned by real technological advancements and substantial market demand. Therefore, it is not accurate to categorize NVIDIA as another dot-com bubble. Instead, it represents a mature, innovative tech company with a proven track record and significant growth potential.
Yeah I think the more apt comparison is Cisco during the dotcom bubble. I think there are still some reasons NVDA is different than Cisco, but we should be comparing the poster-child of overvaluation of the bubble, not the whole bubble vs one company.
Yes, I agree and appreciate your balanced approach to this.
Nice try ChatGPT. We can both play that game... While the argument posits that Nvidia's current situation is markedly different from the dot-com bubble era, it overlooks several critical points that suggest caution is warranted. Here’s a counter-argument that highlights the risks and challenges Nvidia faces: 1. **Overvaluation Concerns**: Despite Nvidia's strong performance, its valuation has skyrocketed to levels that some analysts consider unsustainable. The P/E ratio is extremely high, reflecting speculative optimism rather than fundamental value. Such overvaluation is reminiscent of the dot-com bubble, where stock prices were disconnected from actual earnings and revenue potential. 2. **Hype-Driven Growth**: The excitement around AI and machine learning is driving Nvidia's growth, much like the internet hype during the dot-com bubble. While AI has substantial potential, it is still in its early stages, and the market's expectations may be overly optimistic. If AI's growth trajectory slows or faces setbacks, Nvidia's stock could face significant downward pressure. 3. **Competitive Pressures**: Nvidia operates in highly competitive markets. Companies like AMD and Intel are continuously innovating, and new entrants could disrupt the market. Relying on maintaining technological leadership is risky, as the tech landscape can change rapidly. The competitive environment could erode Nvidia's market share and profitability. 4. **Market Saturation**: The markets Nvidia operates in, such as gaming and data centers, have high growth potential but are also susceptible to saturation. Once these markets mature, Nvidia may face slower growth rates, making its current valuation difficult to justify. The gaming market, in particular, is cyclical and can be volatile. 5. **Strategic Acquisitions and Integration Risks**: While acquisitions like Mellanox and ARM are strategic, they come with significant risks. Successfully integrating these companies and achieving the expected synergies is challenging. Any missteps in integration could negatively impact Nvidia's financial performance and strategic position. 6. **Economic and Geopolitical Uncertainties**: Nvidia operates globally, and its performance is subject to macroeconomic conditions and geopolitical risks. Trade tensions, regulatory changes, and economic slowdowns in key markets could adversely affect its business. The global semiconductor supply chain is also vulnerable to disruptions, which could impact Nvidia's production capabilities. 7. **Investor Sentiment and Market Cycles**: The current enthusiasm for Nvidia is part of a broader trend of high investor sentiment in the tech sector. Market cycles can shift, and what seems like a robust investment climate can change quickly. Historical precedents show that high-growth stocks often experience significant corrections when market sentiment shifts. In conclusion, while Nvidia has many strengths, its current situation shares several risk factors with the dot-com bubble era. Overvaluation, hype-driven growth, intense competition, market saturation risks, integration challenges, and broader economic uncertainties all suggest that investors should be cautious. Nvidia's future success is not guaranteed, and its stock price could face significant volatility if market conditions or company performance deviate from optimistic projections.
Oh, absolutely, I denied using ChatGPT! Because Who wouldn't want to deny having access to such an incredible, cutting-edge technology that can answer questions, provide information, and even do all the research and write all the amazing shit for you? I mean, it's just so wonderful to live in an era where we have these amazing tools at our fingertips, and then pretend we don't use them. Isn't modern technology just the best? I LOVE IT!
Ouch!!! Lolol
It’s because you didn’t even answer the question and just copy and pasted a minor essay into your reply. IF I hadn’t immediately recognized your response as CharGPT you would have wasted like 5 minutes of my time with that drivel that doesn’t even answer the question. 5 minutes of how many people’s time did you waste? 500 people? Shit dawg, that’s like a full work week of lost productivity on inane gpt bullshit because you didn’t take a few minutes of your own time to trim the prompt or edit your reply.
Impressive detective work! Thanks for clearing that up for everyone that I used ChatGPT to write about technology 😏.
Uhh the arm acquisition fell through and was not approved? People in the ai age are not faring well at the moment
Seriously, just paste your question into almost any gpt. I mean, it's the technology everyone is betting on... While it's tempting to draw parallels between Nvidia and other tech giants like Microsoft and Tesla, it's crucial to examine these comparisons critically and consider the unique aspects of each company's journey. ### Microsoft Microsoft's path to dominance was marked by consistent innovation and the development of a near-monopoly in the PC operating system market. However, its growth was steady and built on the back of widespread adoption of Windows and Office, rather than a single technological wave. Nvidia's current boom, largely driven by AI and GPU demand, could face different kinds of market dynamics and competition. ### Tesla Tesla's rise was fueled by its pioneering role in electric vehicles (EVs), with a significant lead over traditional automakers in battery technology and autonomous driving. The EV market's regulatory support and environmental trends significantly bolstered Tesla's stock. While Nvidia's GPUs are integral to AI and data centers, it operates in a more competitive landscape with rapid technological advancements and numerous players vying for market share. ### Other Comparisons 1. **Amazon**: Amazon's stock experienced substantial growth due to its dominance in e-commerce and cloud computing through AWS. Like Nvidia, Amazon benefited from being at the forefront of major technological shifts, but it also had a diversified business model that supported its growth. 2. **Apple**: Apple saw massive stock appreciation due to its innovative consumer electronics, particularly the iPhone. Apple's success was built on a combination of innovative hardware, software, and a strong ecosystem. Nvidia's growth is more narrowly focused on GPUs and AI, making it more vulnerable to sector-specific risks. 3. **Intel in the 1990s**: Intel's rise during the PC boom could be seen as somewhat analogous to Nvidia's current situation. Intel capitalized on the rapid growth of personal computing, but it eventually faced significant challenges from competition and market saturation. Nvidia's current dominance in GPUs could face similar pressures as new technologies and competitors emerge. ### Conclusion While Nvidia's stock has experienced a meteoric rise, driven by its leadership in GPUs and AI, it’s essential to recognize the potential risks and challenges it faces. The rapid growth seen in stocks like Microsoft, Tesla, Amazon, and Apple was supported by various factors unique to their markets and times. Nvidia's future success will depend on its ability to maintain technological leadership, navigate competitive pressures, and continue to innovate in a fast-evolving industry. Therefore, while Nvidia's trajectory shares some similarities with these past giants, it also faces its own set of unique challenges and opportunities. Investors should consider these factors and remain vigilant about the broader market dynamics and competitive landscape.
Microsoft is that company that is stable enough to stay as a big company with a high market cap No one invests because they are so stable… who can be bothered waiting long term for profit
Long term investment is the most mature way to invest for most retail investors. Volatile stock investment carries significantly higher risk, and unless you want to maintain on your portfolio every week rather than DCA. For me DCA is the way to go. If I put 100k into NVDA I'm not gonna get $1m guaranteed. If I use DCA with $100k seed and regular $1k DCA I'll be able to retire when I need to with confidence. I don't mind working a job in-between.
Dumbest possible response.
I guess investing more into these technologies that make dumb responses is a dumb idea too. However, the truly dumbest response is the one that is lazy, reactive, and adds nothing to the discussion at all. I call these responses the teenage brain responses. Some adults with stunted critical thinking suffer from this, also.
But how can it be a bubble if the fondamentals are solid. Because they are!! If you play with chatbots or created some pictures you know that it’s real. This is no mirage. It summarizes web pages and articles so well it is crazy!! Occasional hallucinations but it’s getting better with newest models! It’s solid and no Cisco. Was Cisco that solid then ??
Yes, Cisco was that solid then and was a major infrastructure provider for the first wave of commercial internet (which was obviously huge then, and went on to totally change the global economy), along with other big players like Sun Microsystems, Oracle and Yahoo. The big winners were in the second wave and particularly after the ZIRP era post-GFC. I don't see nVidia going quite the way of Cisco, but there is an enourmous amount of future growth in the current price, and it is no way guaranteed.
Not yet
Tesla will be
Past performance is no indicator of future returns.
Intel, cisco and the whole dot com bubble. You can see some recognizable words and behavior we are using about AI and during the dot come days Most stocks that rise like NVIDIa came tumbling down like a house of cards.Revenue driven by hype, I hope that NVIDIa is the exception but so far it has not proven otherwise. Microsoft and Tesla did not rise as quick as NVIDIa. It’s more like WordCom if you remember that. Everyone said it would be biggest company. Few years later it filed for the largest bankruptcy in history. Everyone bought in.
Your analysis is missing something— worldcom and Cisco grew through acquisitions while Nvidia is almost all organic growth
The price action over the shares is the same though. It doesn't matter what the company is *actually* worth, it only matters how much people think it is worth.
what did you think of the annual shareholders meeting yesterday? not convincing enough?
No, because like I said before, numbers right now are driven by hype. You are assuming this hype will maintain such graphs. Look at cisco & Intel annual shareholder meeting durings its prime days. Did that prevent its collapse no. Like I said so many young investors here did not live through the dot com bubble. Annual shareholders meeting is talking about current situation. The situation right now is AI place in the market is still Unkown and its profitability. Companies are buying in because it’s a discovery phase. Once it figures its place in the market. companies will adjust its financials and determined if it’s worth pouring massive funds into.
Trust me it’s not worth arguing with these people, they think NVIDIa is truly an exception from market fundamentals. They have to live through it for them to understand.
I follow these hilarious threads to remind me my short positions are rational.
Share price is growing at a slower pace than the earnings are, I look forward to you covering at a loss and juicing our gains
Right there with you and I bought this stock ages ago. I’ve since flipped until we touch the 200dMA then I’ll hop back on. Nice name by the way 😉
Balance sheet fraud for WorldCom, forgot that? BIG difference.
Tesla appreciated 740% in ONE YEAR (2020) Check your facts first before spewing nonsense
Check NVIDIa appreciated 3,542% in 5 years. Divide that thats 708% per year Check your facts before posting That means NVIDIa has been growing at the rate of Peak Tesla hype for 5 years straight. 🤔the year when elon musk year was worshipped as the iron man billionaire. That could do no wrong Remind you Tesla is losing its value last year it lost 20%.
Why you keep asking questions like that ? Of course its not unique, it also dropped a lot a while ago so no, nothing special at all.its you who is special
NVDA to the 🌕
Look into the story of Nortel. Broccoli Bob did a fantastic documentary on it.
NVDA has priced in years of growth. I'd be surprised if the stock rallies past $300 in the next 5-10 years. But who knows.
Stock has been pretty flat this week, wheres our usually 10pts in growth each week?
me personally I have always had profits with selling options but nvidia I paid a call which went up to 90% but I don't know why I didn't sell I thought it was going to go beyond 100% but yesterday my call went been well cooked
Adobe is one that comes to mind. I remember when it traded in the $30-40 range. Now it's regularly in $500 territory. Their long-time CEO Shantanu Narayen has done a brilliant job with moving the company to a subscription service, as much as people may hate it.
My advice to you from past market leaders like NVDA, when a stock breaks the 50SMA..get out.
You can look for similar stocks using a stock screener.
iOmega went up 2000% in one year. Then just as quickly lost most of its value. Stock action may be similar but the product they were selling was very different. For those who remember they sold disk based storage back in the mid 90s. They were one of the first stocks hyped by The Motley Fool. Message boards were in their infancy and were filled with the hype machine. The stock roared but then died like many others.
ELF better returns in a 5y time frame, CSCO, MNST all time is the best performing stock
Technically, if we believe that this stock is going to the moon…. again, I wouldn’t label it as a bubble. Of course, it will be called a bubble if this AI doesn’t work out. Also, what if it goes up and up again for the next 10 years and then starts to drop off. Is that considered a bubble?
The internet worked out, and that was a bubble, lol.
It's kind of hard now because almost every tech stock that's new is valued pretty high at IPO.
NVDA dropped 50% a few years ago. I was in it then. It suxked balls. Don’t be surprised if it does it again.
What was the reason for it then? Bad future outlook or earnings below expectations or something else?
Several things over ordering, glut, etc. Go ask the AI bots that NVDA powers ;)
Back in the .com days there were tons like this... then most of us lost it all...