Is Nvidia the Future of AI or a Bubble Waiting to Burst?
Nvidia (NASDAQ: NVDA) has been on an incredible run since the start of 2023. The stock has risen around 700% and has been powered by impressive revenue and earnings growth along the way. A direct line can be drawn from this performance to artificial intelligence (AI) demand.
But when massive hype surrounds a technology, companies involved in it can be caught up in an investing bubble. When this bubble bursts, it could take years (or decades) to recover. So, is Nvidia the provider of the future? Or is it a bubble waiting to burst?
Perhaps the best comparison to today's AI gold rush is the internet boom in the late 1990s and early 2000s. Companies like Cisco and Oracle were spearheading the stock market with the networking equipment needed to proliferate on the internet. However, that bubble burst, and it took Oracle nearly two decades to set a new high, while Cisco is still below its all-time high.
Source Fool.com