Someone is realistic and sees some...

Someone is realistic and sees some risks.

https://seekingalpha.com/article/4677434-nvidia-rocket-ship-valuation-hope-you-packed-a-parachute

Nvidia's Rocket Ship Valuation: Hope You Packed A Parachute!

Mar. 11, 2024 5:14 PM ETNVIDIA Corporation (NVDA) Stock, NVDA:CA StockAMD, AMD:CA, AMZN, AMZN:CA, ARM, GOOG, GOOG:CA, GOOGL, INTC, INTC:CA, META, META:CA, MSFT, MSFT:CA, TSM, TSMWF108 Comments19 Likes

WideAlpha
4.87K Followers
Follow

Summary

• Nvidia Corporation's impressive growth and market dominance are attributed to its investment in innovation and leadership by CEO Jensen Huang.
• The company's reliance on Taiwan Semiconductor for chip manufacturing poses significant geopolitical risks.
• Competitors, including AMD and cloud providers like Amazon and Microsoft, are developing their own AI chips, threatening Nvidia's market position.

Excerpt:

Risks

The main risk we see with an investment in Nvidia is that it trades at a very high valuation, while its competitors are getting more aggressive and its customers are looking for ways to replace them. Competing with competitors is usually hard enough, competing with your customers, which have billions to fund their efforts, adds an extra level of difficulty. We also see a risk that some of its employees might be getting complacent, and they might think they can coast for some time on past efforts. Other risks include a recent copyrights lawsuit, and SoftBank pouring billions to compete with them. Further out, we see risks that there might be a new paradigm shift in how computing gets done, with quantum computing and neuromorphic chips continuing to make important advances