"Nvidia is starting to look a bit toppy, especially after plunging to the lower end of its lengthy consolidation channel. If Nvidia breaks through the low end, it'll be tough to tell what the next stop will be."
"The biggest concern with Nvidia is what the endgame will be once the hyperscalers make their own custom silicon. Competing with Nvidia could prove tough as the Magnificent Seven looks to meet their AI computing needs."
"Nvidia stock might still be considered a tad on the expensive side, especially for Mag Seven standards, at 34.1 times trailing price-to-earnings (P/E), considering the cyclicality and downside risks of chips."
Nvidia's stock is showing signs of weakness as it nears the lower end of its consolidation channel, raising concerns about a potential breakdown. Despite a 50% increase over the past year and a $4 trillion market cap, investor anxiety is growing, particularly among latecomers. The emergence of custom silicon from hyperscalers poses a significant challenge for Nvidia. While the company remains a leader in AI chip production, its stock valuation appears high compared to industry standards, leading to mixed perceptions about its affordability.
Read at 24/7 Wall St.
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