Nvidia, an AI chip maker, has seen a rapid rise in its stock price, surpassing Microsoft to become the most valuable company in the world. The Wall Street Journal has drawn parallels to the dot-com era, when Cisco experienced a similar boom and subsequent crash. While Nvidia’s success has raised concerns about the sustainability of the AI boom, the company’s overvaluation and high P/E multiple suggest that its stock price may fall to reflect its actual earnings. Finance experts like Robin Greenwood and William Goetzmann warn of potential bubbles in the market, but also acknowledge the transformative potential of companies driving innovation. Nvidia’s stock price surge reflects anticipation of another technological transformation fueled by AI, similar to the impact of the Internet 25 years ago. Investors continue to flock to Nvidia, despite the risks involved.
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https://finance.yahoo.com/news/nvidia-stunning-rise-offers-flashbacks-131507803.html
