Nvidia has delivered very strong results despite continued skepticism from investors who discount or dismiss its progress. Michael Burry has bet against the company, citing concerns that AI and semiconductor demand could slow, peak, and trigger downside risk. Nvidia operates in a cyclical business, making it difficult to judge whether its valuation reflects a bargain or a trap. If earnings remain strong and margins stay elevated, Nvidia could be an unusual long-term winner. The company also aims to move beyond GPUs by pursuing robotics and physical AI. Physical AI’s potential total addressable market is described as extremely large, with a cited figure of $40 trillion, suggesting long-term growth opportunities.
"It's hard to believe that shares of Nvidia ( NASDAQ:NVDA | NVDA Price Prediction) could still have gas left in the tank as the firm reports absolutely stunning results to a tough crowd that continues to discount, or even dismiss, the massive strides that Jensen Huang's empire has been making."
"Of course, it's hard to be truly bullish on a $5.2 trillion behemoth as someone as famed as Michael Burry, of The Big Short fame, bets against the company while fears of what could happen when AI and semiconductor finally do show signs of demand slowing and, eventually, peaking out."
"After all, Nvidia is in a cyclical business, and it's becoming harder to tell if Nvidia is an absolute steal of a bargain or something that's far riskier than its seemingly modest multiple suggests. If earnings keep coming in hot and margins stay heightened, there's no question that Nvidia might be a historic anomaly and a bargain in spite of its meteoric and bubbly-looking multi-year run."
"As most others dismiss Nvidia as a cyclical AI chip play, though, the company is already looking ahead to the fast-rising robotics and physical AI opportunity. Indeed, physical AI's long-term potential could be profound enough to keep Nvidia ahead of the pack. And its colossal $5.2 trillion market cap does not seem to be all too much of a limiting factor when you consider the potential total addressable market (or TAM) of physical AI."
Read at 24/7 Wall St.
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