Is Nvidia stock overvalued? It depends on the future of AI.
It has been a wild few days for Nvidia stock. But the hype isn’t dying down anytime soon.
When a fan asked Nvidia CEO Jensen Huang to sign her chest earlier this month, that might have been a sign that the hype around the chipmaker may have reached unsustainable heights.
Over the past few years, Nvidia’s computer chips — which have some technical capabilities that make them well suited to AI applications — catapulted the company to new echelons of profitability. Last week, Nvidia briefly became the world’s most valuable company; three days later, it lost that title amid a days-long sell-off of its shares. While its stock price has since recovered somewhat, it’s now the world’s third most valuable company with a market capitalization of $3.1 trillion, after Microsoft and Apple.