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250 sats \ 3 replies \ @grayruby 3 Jun \ on: Nic Carter: the NVDA rally is unnerving, and not because of AI safety fears econ
Nvidia is just Cisco of this era. A great company but so highly valued that it might have a lost decade at some point. Cisco still hasn’t reclaimed its dotcom peak. Passive flows change the dynamic now so maybe Nvidia keeps going up based on passive flows and buying stock back but it’s hard to imagine it’s best returns aren’t behind it.
Apple has competitors and still is one of the highest valuated companies in the world.
Nvidia has no real competition in a few spaces. It can do the same.
I honestly don't get why TSM and ASML valuation isn't even higher, they are quite literally THE monopoly right now, especially when Samsung is now also struggling to keep up with TSM.
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This is my feeling. Though, I'm not much for dabbling in the stock market and my opinion is highly uninformed. I'm much more interested in the effects of the general trend. Any thoughts on where this is going?
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I think AI will be big but I don’t know how long it takes to play out. I am not in the camp AI is going to add 2-4 points to gdp for the next ten years and get indebted nations out of their debt spirals. I think it takes longer to play out. I do think it will be a boon to gdp but we has a ways to go and much regulatory pressure between now and then.
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