Nvidia euphoria: Stock is a 'little bit ahead of itself,' doesn't have the revenues, Dory Wiley says
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Published 2024-02-27
Commerce Street Capital President Dory Wiley joins Yahoo Finance to discuss the popularity of Nvidia and the market's attempts to balance the AI rally with the expectation of rate cuts. He also explains what investors need to keep in mind when trading these stocks.
Wiley expands on his thoughts about Nvidia in this market: "I think you under-allocate Mag Seven...at your own risk. I think you gotta stay allocated and I think you have to tilt to some of your favorites like Nvidia, and that's been working. It's because there's fundamental reasons to do so. Microsoft, Nvidia, massive margins, massive market entrenchment and great return on equity, estimated earnings, estimated revenues continue expanding. You saw for Nvidia what they did -- their net income is what? Up almost 586%? What kind of company gets you that? A company like that warrants a euphoria."
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All Comments (21)
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Personally, I think investors will start to seek more market diversification. Can I confidently invest about $40k into the markets this year? I'm still not sure how rates will effect the market just yet, which worries me a lot.
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Taking early notes from Warren as to the importance of sound asset diversification and risk management It can't be overstated. I've been trying to grow my portfolio for sometime now and it’s been stagnant, I would greatly appreciate any other suggestions.
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Understanding personal finances and investing will most likely lead to greater financial independence. By being knowledgeable about money and investing, individuals can make informed decisions about how to save, spend, and invest their money. I know someone who made over $350k in this recession influenced market, but to the best of my knowledge, it was through a financial advisor.
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Great video, I've been interested in investing ever since I came across articles of people making up to $150,000 and more in this period, thanks for the video but is it really possible for a retail investor to achieve this in months?
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He must be part of the shorties
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I don't think it's euphoria.... nvidia has a PE ratio of 66. If the revenue doubles in 1 year which is likely...it's will be 33 PE ...same as coca cola ..but possibly better growth next 5 years...
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A crash would be amazing, buy the dip. But its actually unlikely, NVIDIAS Numbers are absolutely insane!
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The first analyst who is living in reality. Revenues need to be around 100b per quarter to justify this. Share price will be in this range for a long time. Bulls will shout about Forward PE and PEG but ignore the total valuation of the business and the current supply constraints which will not be an issue in about 6 months. Even if revenues hit 50b per quarter over the next 1-2 years the stock will likely be back down from these prices.
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After the huge run up NVIDIA has had, it’s taking a rest right now before its next leg up in March.
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The thing about momentum stocks is that the reality is what people believe. Undervalued stocks are objectively undervalued.
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Honest, fair opinion.
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yahoo has been saying the same crap since $400....
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You have a good point. However tell me how transformative and reliant everyone is on Nvidia Hardware and Software ecosystem. Nvidias recurring revenue is the X factor.
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If NVDA is slightly ahead of itself, SMCI just lapped it!!
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This is the same man who said a few weeks ago that SMCI was a "meme stock". Yes, it had a pullback correction, but it's up again. Just keep in mind that so many countries throughout the world will be investing a lot more in updating their server technologies.
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Thats why i avoided Yahoo Finance like a plague.
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He says to be realistic, but unfortunately or fortunately for us, this is a time to be the complete opposite of that.
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Haters gonna hate
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LPU chip is going to dent into Nvidia's business... Dominance is going to be short.
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If you want to loose out on making gains listen to these perma bears
