...NVIDIA has chalked up an impressive 264% gain since its Oct 2023 lows.
...imagine if NVIDIA were to crash 50% from here, it would still be 32% higher than it was in Oct 2023. That's how far it has gone. And even a 50% crash would not take away from it being one of the greatest companies.
...but NVIDIA is going for a stock split, hopeful that after the stock split, people looking at the charts won't remember about the split and be less cognisant of the fact that it has risen so much in such short period of time.
...goes back to what I've been saying about darling stocks of a theme of the year tend to FRONT RUN their potential. And when NVIDIA finally does crash 50%, you'd still hear people saying that AI would only become more entrenched in business and society and so NVIDIA can only go back higher. Not necessarily and in fact based on past precedents, darling stocks of darling themes seldom return to their peak price after they have fallen down to earth. Because as time progresses, their first mover advantage becomes diluted, there is more competition and supply and reality soon dawns that frothy expectations were too well ahead of itself both in terms of how soon AI can change things and how material revenues can accrue from that technology.
...when the bubble of the darling theme burst, many continue to cling onto hope they will return to their previous valuation, .....they don't and the sooner they move out of that DENIAL, the better the outcome they would be able realise for themselves.
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