From Nasdaq: 2024-06-29 04:29:00

The bulls are running wild on Wall Street, with the AI revolution driving major gains in the Nasdaq Composite and benchmark S&P 500. PwC estimates AI could add $15.7 trillion to the global economy by 2030, with Nvidia leading the charge as the most valuable publicly traded company. Can Nvidia sustain its growth, or is a crash looming on the horizon?

Nvidia has experienced unprecedented success, becoming the most valuable publicly traded company and dominating the AI market with its graphics processing units (GPUs). Major tech companies rely on Nvidia’s GPUs for their AI-accelerated data centers, and the company’s pricing power has led to impressive margins. Nvidia’s innovative advantages and industry-leading position make it a top player in the AI space.

Despite Nvidia’s current success, history suggests that new innovations like AI undergo periods of maturation and potential market corrections. The company’s valuation metrics, particularly its price-to-sales ratio, are at high levels reminiscent of past bubble events. While Nvidia’s AI technology holds promise, investors should be cautious of potential market dynamics and consider long-term growth prospects before investing in the stock.



Read more at Nasdaq: Is Nvidia Going to Crash in the Second Half of 2024? History Weighs in and Offers a Big Clue