"Nvidia ( NASDAQ:NVDA) stock has been through plenty of rough patches before, but something certainly feels more ominous this time around, with shares failing to sustain a rally after a record quarter and an upbeat tone from its CEO, Jensen Huang. Based on the quarter and commentary from management alone, you'd think shares of Nvidia would be breaking out to new highs by now, but that simply hasn't been the case."
"With Dr. Michael Burry, a real doctor who bet against the housing market ahead of the 2008 stock market meltdown, placing a bearish position on the chipmaker and his new newsletter "Cassandra Unchained" likely to keep the bearish points coming over time, you're certainly not alone if you're thinking about hitting that sell button, even as the broad market recovers, with the S&P 500 now pretty much back to where it was before the AI "November nosedive" began."
Nvidia delivered a record quarter and upbeat commentary from CEO Jensen Huang, yet shares failed to sustain a rally. Michael Burry established a bearish position and launched a newsletter, raising continued skeptical points that pressure investor sentiment. Nvidia issued a seven-page memo defending against Burry's criticisms, but investor conviction to buy the dip remains limited. Criticisms include circular dealmaking in the AI ecosystem, stretched valuation, disputes over GPU depreciation timelines, and comparisons to past tech bubbles. Some shareholders are contemplating taking profits to reduce exposure, while no clear smoking gun or market panic has emerged.
Read at 24/7 Wall St.
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