Nvidia Vs. Cisco — A Bubble by Any Other Metric
Measured different ways, you can see why one is still climbing, where by this point the other wasn’t. It will come down to sustainability.
Selling lots of stuff at a very high profit margin.
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The subject won’t go away. Indeed, the interest in it continues to inflate. So it’s necessary to dive yet again into the question of whether what we’re seeing at present is a stock market bubble, a focused bubble in artificial intelligence beneficiaries (led by Nvidia Corp.), or a still-healthy bull market. The argument that it isn’t a bubble rests on valuation; for example, Mislav Matejka of JPMorgan argues that the valuations of the “Magnificent Seven” big tech groups are currently lower relative to the rest of the S&P 500 than the average of the past five years.