1. Home
  2. >
  3. Stock Markets 🤑
Posted

Nvidia is a stock bubble and its popping could trigger a broader market crash, investing legend Rob Arnott says

Nvidia's stock, which has tripled in value this year, is considered a bubble that could trigger a broader market crash if it pops, according to investing legend Rob Arnott.

businessinsider.com
Relevant topic timeline:
Nvidia's stock jumps after a recent slump, Microsoft submits a new deal to appease U.K. antitrust regulators regarding Activision Blizzard, and Palo Alto Networks stands out in the cybersecurity industry with its strong financials.
Nvidia's earnings will determine the future of the stock market, according to Eric Cuka, a stock market veteran, who provides analysis, price targets, and predictions in a video for The Motley Fool.
Nvidia's bloated valuation and high price-to-earnings ratio poses a threat to the stock market, as investors may realize the company is not as strong as perceived, leading to a potential sell-off that could affect the entire market.
Nvidia shares reach an all-time high due to high expectations for its quarterly results, driven by its dominance in the booming artificial intelligence market.
Nvidia's impressive second quarter earnings have further solidified the bullish trend for AI-related cryptocurrencies, causing tokens such as FET, GRT, INJ, RNDR, and AGIX to surge by over 4% in the past 24 hours.
Nvidia's strong earnings report has implications for other chip and AI stocks, leading to a potential rally attempt in the market, while Dow Jones and S&P 500 futures are mostly flat.
Nvidia's sales have doubled, reaching a record high of $13.5 billion, driven by increasing demand for its AI chips, and the company expects sales to continue to rise, with plans to buy back $25 billion of its stock.
Nvidia's strong earnings and optimistic forecast for the future have boosted AI-related stocks and global markets, but concerns about U.S. consumer spending and potential market correction persist ahead of the Federal Reserve's Jackson Hole symposium.
Investors are hopeful that Nvidia's upcoming earnings report can reignite the U.S. stocks rally, following a 2023 increase in the company's shares and the broader equity rally.
Nvidia's stock is surging as its stellar earnings alleviate concerns about supply constraints and the role of Chinese customers in driving demand.
Nvidia's stock rose 5% after the company reported better-than-expected earnings, strong guidance for the upcoming quarter, and increased demand for its datacenter products.
Nvidia's blowout quarter drives shares to an all-time high, while other tech stocks and the Nasdaq surge, and multiple price target hikes for Splunk boost its stock.
Nvidia Corp. has exceeded Wall Street expectations with its record earnings and blowout forecast due to skyrocketing demand for AI-chip systems, leading to a remarkable supply chain performance and impressive growth in revenues, with the company only meeting about half of the demand.
Despite Nvidia's strong earnings, stocks closed lower due to mixed economic signals and the decline of big tech stocks such as Tesla and Amazon.com. Investors are awaiting Jerome Powell's speech for insight into interest rates, while the 10-year Treasury yield climbed and Dollar Tree's stock fell.
Nvidia's market value surpasses Apple's as it leads the market higher amid the investing frenzy over artificial intelligence.
Nvidia's decision to repurchase $25 billion worth of its shares, despite its soaring stock price, has surprised some investors who expected the company to reinvest its earnings in its fast-growing business.
Nvidia's strong growth potential and their ability to adapt to a slowing economy make them a key player in the stock market.
Nvidia's blowout earnings were expected to boost the stock and index futures, but the Federal Reserve's decision to move interest rates will have a greater impact on the market.
Nvidia dominates the AI chip market with quadrupled revenue over the past two years and estimated to have more than 70% market share, while AMD shows slower growth and Intel struggles with yearly revenue declines and minimal market share.
Nvidia plans to buy back billions of dollars in stock, signaling a potential trend that could boost the stock market.
The performance of Nvidia stock has been impressive, but other retailers have struggled, leading to concerns about the economy, such as credit card delinquencies, falling home sales, weakening manufacturing, and tightening lending standards. These factors suggest that a recession may be looming.
Nvidia stock is currently at its cheapest since January, before it experienced a 250% rally.
Nvidia reported a strong quarter, with beats across three out of its four businesses, driven by strong demand for its data center segment and generative AI products, leading to record revenues and beating market consensus by 22%. However, there are concerns about the sustainability of this growth and the potential impact of competition in the future.
Nvidia stock is approaching its all-time high, but there are three reasons to believe it has reached a plateau.
NVIDIA's Q2 earnings showed high growth and a positive outlook, but the AI hype may be fading, and the stock's valuation is overstretched, leading to a recommendation to sell with a potential 40% decline in the next three months.
Nvidia shares reached a record high and a $1.2 trillion market capitalization for the first time, putting them on track for their best year ever, after the company's blowout earnings report impressed investors.
Nvidia's shares reached a record high after the chipmaker announced its partnership with Google, while the court ruling against the SEC's denial of Grayscale's Bitcoin ETF provided a boost to cryptocurrency markets; however, economic data, including lower consumer confidence and a decline in job openings, raised concerns.
Nvidia's stock slips after reaching a record high, but analysts suggest that the chip maker may still be a bargain.
Investors eagerly awaited Nvidia's earnings report, which beat expectations, but the market rally was short-lived due to Federal Chair Jerome Powell's speech at Jackson Hole, with the Nasdaq falling over 2% and bulls losing hope; however, there is optimism for a potential turnaround next week with upcoming economic data events.
Semiconductor company Nvidia has seen its revenue double year-on-year in the second quarter of 2023, thanks to the growing demand for artificial intelligence technology and its specialized chips, making it uniquely positioned to capitalize on the AI boom.
Nvidia's market cap rose in August due to strong profit forecasts, while other tech giants like Apple and Microsoft saw declines, and Berkshire Hathaway and Tencent had mixed performances.
Nvidia's high valuation could pose a significant risk to the overall market, potentially causing a market downturn and leading to a bubble, warns Rob Arnott, founder of Research Affiliates.
Artificial intelligence is a revolutionary technology, but there are concerns that it is a bubble waiting to burst, as evidenced by the soaring stock price of Nvidia.
Nvidia, the leader in AI infrastructure, has experienced substantial growth and is expected to continue growing, but investors should be cautious of the stock's high valuation and potential volatility.
Renowned investor Jeremy Grantham warns that the US tech bubble is on the verge of bursting due to inflated stock prices driven by AI hype, with a high chance of a US recession in the next 18 months. He advises caution in investing in US equities, real estate, and commodities, but sees compelling opportunities in climate-change stocks.
Nvidia has tripled its stock so far in 2023, but it is not among the best performing stocks of the year, as Carvana, MoonLake Immunotherapeutics, IonQ, and others have outperformed it.
Nvidia, the semiconductor giant, has experienced a 10% decline in their stock this month, leading to a $180 billion decrease in market capitalization, attributed to the "September effect," although it remains the best performer in the S&P 500 due to the rise of AI and ChatGPT.
Nvidia stock has experienced a pullback along with other chip makers, but analysts remain positive and predict a significant upside potential for the company, particularly in the AI space, with an average 12-month price target implying a 55.14% increase.