Nano-X Surges on Tiny Nvidia Stake; Sell Rating Intact Despite AI Progress
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Nano-X Imaging stock spiked 49.4% after Nvidia bought a small stake in the company, but this was an overreaction as the investment was tiny.
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Nano-X is still losing a lot of money - $21.5 million in the latest quarter - and fundamentals remain poor despite some minor improvements.
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The Nvidia investment increased the chances of a future buyout slightly, but the market is getting ahead of itself in valuing Nano-X so highly.
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Nano-X does have some promising new AI and regulatory approval developments, but profits could still be far off.
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Overall Nano-X still seems significantly overvalued based on its weak fundamentals, so the "sell" rating remains apt despite the Nvidia news.