From Investing.com: 2024-06-21 04:32:56

Seasoned tech investor Paul Wick is reducing his holdings in Nvidia Corp, expressing doubts about future earnings growth. Wick compared Nvidia’s current situation to Cisco Systems during the dot-com bubble, citing high customer concentration as a risk factor. Despite Nvidia’s recent success, investors like Wick remain skeptical about the sustainability of the rally. Nvidia trades at a high valuation of 43 times its projected earnings for the next year, outpacing most peers in the Philadelphia Semiconductor Index. Many of Nvidia’s largest customers, like Google and Microsoft, are designing their own processors, posing challenges for the company. Despite concerns, Nvidia remains a top holding in Wick’s fund, which has outperformed 97% of its peers over the past three years.



Read more at Investing.com: Prominent fund manager cuts his Nvidia stake By Investing.com