What Concerns Me About NVDA

Nvidia Hits $4 Trillion – But How Sustainable Is It?

Nvidia briefly hit a $4 trillion market cap today. Wild, right?

The stock has soared 80% in just the last 2.5 months — a huge move. But let’s take a step back and look at some fundamentals. Nvidia’s PE ratio is 52.5 and its price-to-book ratio is 46.5. That’s rich by any standard and implies expectations of continuous high growth for a long time.

Now, they’ve got great liquidity and dominate AI chip design — they don’t manufacture, but they’re the best at what they do. Still, I’m wondering: Do they have a moat Warren Buffett would approve of? And if someone develops a chip that does the job with less energy, especially in a world becoming more eco-conscious and energy-cost aware, would that chipmaker take the lead?

There are rumors of breakthroughs — including a low-energy chip from China. Could another competitor disrupt this AI-driven rally?

And speaking of AI... even many of the most brilliant tech minds aren’t sure what the future holds. It’s a powerful tool, but the use cases are still evolving. That uncertainty leaves a big question: How long can Nvidia keep this pace?

Just a few thoughts for you to chew on.

#Nvidia #TechStocks #AITrends #MarketCommentary

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