Is Nvidia Stock Overvalued?
If I had $100 for every time I've read in the last three years that Nvidia (NASDAQ: NVDA) stock is "overvalued," I would be swimming in some big bucks.
The artificial intelligence (AI) chip leader's stock has run-up big following OpenAI's release of its ChatGPT chatbot in late 2022. (It's returned 1,350% over the three years to Oct. 28.) This event has sparked a rush among the big techs and other companies to obtain generative AI capabilities. But a big run-up in stock price alone does not necessarily mean a stock is overvalued.
To be clear -- I'm not saying that Nvidia stock is immune to a big decline. Indeed, it could suffer one if some other company's technology replaced its graphics processing units (GPUs) as the gold standard for training AI models and deploying AI applications. I'm just saying that based on the data available, the "Nvidia stock is overvalued" argument is not a good one, in my view.
Source Fool.com
