Investors are captivated by the rapid rise of AI chip maker NVIDIA, surpassing Microsoft to become the most valuable company in the world. The surge in NVIDIA’s stock price, reminiscent of the dot-com era, has raised concerns about a potential bubble in the market as billions are poured into AI-related ventures. Despite the high P/E ratio of the company, some experts believe that the AI boom could lead to transformative changes in society and the economy, similar to what the Internet did two decades ago. However, caution is warranted as history has shown that stock market bubbles can lead to significant losses when reality sets in. The future of NVIDIA and the broader market remains uncertain, with some predicting a correction in stock prices to reflect actual earnings. Investors are advised to carefully monitor the situation and consider the long-term implications of investing in AI-related stocks.
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https://fortune.com/2024/06/21/nvidia-share-price-dotcom-bubble-ai/
Nvidia’s remarkable ascent brings back memories of the dot-com bubble
