No. of Recommendations: 2
Option is #1:
I have no idea whether NVDA is currently priced right. Their stock has come a long, long way ... but their future is very bright. (Worth twice all the oil companies combined?) If I was forced to guess, I'd say they'll be down a year from now. It feels a little like 2000 when shorting certain tech stocks was the correct trade ... but a bad long term strategy.
The important thing about NVDA, is to understand what it means for the rest of the market. Right now at least, they're a picks and shovels company. At some point, human level intelligence can/will be deployed into everything that moves or with a plug. Training that intelligence is a big business. (But it's nowhere near the value of the products it enables.) There won't be many companies with the capital and know-how to compete in this space. This is a long boring presentation on the economics of Robotaxi and Bot, two of the products AI enables:
https://www.youtube.com/watch?v=bSchsi1p_IM There is a similarity between NVDA and TSLA. Both were misunderstood. NVDA slumped when people thought that they were a gaming or BTC play. The market figured out (after their CEO talked about it for years) that they're an AI company. Same will be true for TSLA, the market thinks they're a car company when actually they're an AI company ... maybe the biggest (not in revenue but in potential).
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Option #2, and in the spirit of trolling for rec's:
This whole AI thing is just a fad. Nobody will even remember it in ten years.
