Neuberger Berman Group’s Steve Eisman faced some trouble due to a $430 billion selloff of Nvidia Corp, a prominent player in artificial intelligence. However, Eisman remains optimistic about the company’s long-term potential, citing its relevance in the upcoming years. Despite a recent downturn in shares, Eisman believes that Nvidia’s overall trajectory is positive.
The recent surge in Nvidia’s stock price has been fueled by growing demand for its AI-focused chips. The company’s stock rose significantly following an earnings report in May, peaking in June and briefly surpassing Microsoft as the most valuable company in the world. While some observers are concerned about Nvidia’s rapid growth, Eisman dismisses valuation worries, emphasizing the importance of the company’s narrative.
Saira Malik, CIO at Nuveen Asset Management LLC, echoes Eisman’s sentiment, stating that Nvidia is a key player in the AI market and will continue to benefit from increased demand. Malik oversees a substantial investment fund that has outperformed many peers, with Nvidia being one of its top holdings. She believes that Nvidia’s current valuation is reasonable given its strong growth prospects.
Malik also points out that Nvidia’s present valuation, while higher than the Nasdaq 100 index, has decreased from its peak earlier this year. The company now trades at a level similar to other industry peers like Advanced Micro Devices Inc. She notes that the current rally in Nvidia and other tech giants like Microsoft is distinct from past bubbles, as these companies have established themselves over time.
Overall, both Eisman and Malik remain bullish on Nvidia’s future prospects, emphasizing the company’s dominant position in the AI market. Despite recent market fluctuations, they believe that Nvidia’s continued success is tied to its technological innovations and widespread adoption in the industry.
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https://finance.yahoo.com/news/steve-eisman-says-nvidia-story-151026838.html
