社区

Personally, I will avoid NVIDIA (NVDA) because, despite the recent price drop, it is still far too expensive. Even after falling in the past month, the stock remains overvalued in my opinion.

NVIDIA (NVDA)

• Recent Price Movement: NVIDIA closed at $110.57 yesterday, down 5.74% from the previous trading day. The stock has experienced some volatility, but it remains at a high valuation.

• 52-Week Range: The stock has traded between $75.61 and $153.13 over the past year. Even at its 52-week low, it still seems overpriced.

• Personal Buy Target: I would only consider buying if the stock fell below $35, though I recognize that this is highly unlikely in the near future.

• Overvaluation Concerns: NVIDIA’s valuation appears inflated, driven largely by AI hype and excessive optimism.

• Market Euphoria: The company has benefited from significant enthusiasm around AI, data centers, and GPUs, but I believe this excitement has pushed the stock to unsustainable levels.

• High P/E Ratio: NVIDIA’s price-to-earnings (P/E) ratio is significantly higher than many other semiconductor companies, which suggests that investors are pricing in aggressive future growth expectations.

• Competition & Risks: While NVIDIA dominates the GPU market, competitors like AMD, Intel, and even emerging players are increasing their efforts in AI and graphics processing. If NVIDIA loses market share or faces technological challenges, it could see a correction.

• Macroeconomic Factors: High interest rates and economic uncertainty could put pressure on high-valuation tech stocks, especially those priced for perfection like NVIDIA.

• Historical Trends: Many high-flying tech stocks have seen major corrections after periods of extreme hype. Companies that were once "unstoppable" often face reality checks when growth slows or expectations become too unrealistic.

For these reasons, I am staying on the sidelines for now. While NVIDIA is a great company, the stock price simply doesn’t justify an investment at these levels.