NVDA has a strong demand ahead of it, the current pullback was meant to happen after the rally we saw in the last couple of years. NVDA is the top pick for AI and semi conductor stocks but I think after hitting the valuation of more than 3 Trillion the question arises how much more growth can you expect ? Is the same rally even possible going forward.
Investors and even day traders seek value based on current situation.
From that perspective the growth in Quantum Computing, the rise in stocks such as $Rigetti Computing(RGTI)$ $Quantum Computing Inc.(QUBT)$ has moved the narrative for many. You can still expect triple digit % returns from these stocks so I can understand why money may temporarily move away from the likes of NVDA,$Apple(AAPL)$ $Microsoft(MSFT)$ to these stocks which are still in there early days and have a good growth potential.
However financial fundamentals is also something important to take into account. 2025 is an year of uncertainty, fed has lowered the interest rate in DEC and hinted at 2 more rate cuts in 2025. Is that going to be enough for a soft landing ? Shiller index which tracks the PE ratio for S&P500 is close to all time high, many institutional investors are pilling up on cash, policy changes with Trump - after all politicians dont always do what they say in the pre-election campaigns. So in uncertain times stocks with strong fundamentals and growth prospects are the ones to hold on.
Long story short its always high risk - high reward & low risk - low reward
Modify on 2024-12-19 07:25
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- Tiger_comments·12-19Thanks for sharing. Yes, shiller pe is already too high. Cash is the best pick now.LikeReport
- ClarenceNehemiah·12-19Great insights on NVDA and the market dynamics! [Wow]LikeReport