Preamble:
Nvidia's market value evaporated by 1.5 trillion overnight, and the first AI stock is no longer in the limelight?
Is the plunge a wake-up call for high valuations or a prelude to an AI bubble?
How far should investors view this "darkest moment"? This article will take you to analyze the mystery behind the collapse of Nvidia's stock price and explore the future picture of AI industrialization.
Nvidia's market value evaporated by 1.5 trillion in one day, and the first share of AI is no longer in the limelight?
The former leader of technology stocks has now lost more than $200 billion in market value overnight! Nvidia's stock price plummeted by 10 percent in a single day, like a bombshell detonating on Wall Street.
The chip giant, once with its leading position in the field of AI, once became the darling of U.S. stocks, and its market value soared all the way to the staggering $2 trillion mark. However, the good times did not last long, and Nvidia's stock price has now plummeted and plummeted.
Behind this stock price plunge is the alarm bell of the bubble of the entire technology stock. For a long time, the valuations of tech stocks have soared, far exceeding their actual profitability.
Especially with the blessing of the concept of AI, investors' expectations for chip stocks such as NVIDIA have reached an unprecedented height. However, when the bubble blows bigger and bigger, there is a risk of bursting at any time if there is a stir. Nvidia's decline is a signal of this high valuation risk.
With the collapse of Nvidia, people can't help but wonder: has AI concept stocks entered the stage of squeezing bubbles? Although the future of artificial intelligence is bright, there is still a long way to go before it is truly commercialized.
Once investors' enthusiasm gradually cools, the bubble of AI concept stocks may burst at any time. And NVIDIA, as the first AI stock, its fate has attracted much attention. Will it be able to withstand this storm, or will it fall from the altar like Tesla back then? I am afraid that time will be left to answer this question.
Caught in the Musk whirlpool, the history of Tesla's rise and fall predicts the fate of Nvidia?
In the past, Tesla was a leader in the new energy vehicle industry, leading the global electric vehicle revolution. Under Musk's leadership, Tesla's stock price once rose wildly, setting one record after another.
Investors have high hopes for this "Iron Man" car, which is seen as a disruptor in the future automotive industry. However, the good times did not last long, and when the new energy bubble gradually dissipated, Tesla's halo gradually faded.
Once upon a time, Tesla's market value once surpassed that of traditional car giants GM and Ford combined, and Musk became the richest man in the world. However, when the market enthusiasm ebbed, real problems followed.
Poor production efficiency, delivery delays, product quality issues, ...... All kinds of negative news, like sharp claws, tore the veil of Tesla's perfection. The stock price has also begun to plummet, and Musk's throne as the richest man is in jeopardy.
In order to stop the loss, Tesla had to sacrifice the big knife of layoffs, and thousands of employees were forced to leave. The former new energy star is no longer beautiful.
Time flies, and NVIDIA, a rising AI star, seems to be following in Tesla's footsteps. With the rise of the AI boom, Nvidia's stock price soared with its leading edge in the field of artificial intelligence chips, and its market value once exceeded the trillion dollar mark.
Countless investors flock to Nvidia as a gold mine in the AI era. However, as the bubble blows bigger and bigger, the crisis is brewing. The painful lesson that Nvidia's market value evaporated by more than $200 billion overnight is just like a wake-up call for Tesla's stock price crash.
The prospect of AI is enticing, but how far is its commercialization, and when the tide of investor enthusiasm recedes, will Nvidia still stand?
History is always strikingly similar. The glory and decline of Tesla back then seem to be repeating itself in Nvidia. The AI bubble is inflating, and Nvidia is at the center of this maelstrom. Will it be able to learn from Tesla's rise and fall and find a way out of it, or will it repeat the mistakes of the past and fall victim to the next bubble burst? All of this is a huge question mark.
The landing of AI is far away, can Nvidia's stock price turn against the wind?
At present, the AI boom is sweeping the world, and NVIDIA has become the protagonist of this scientific and technological feast by virtue of its unique advantages in the field of AI chips. However, behind the frenzy of investors, a disturbing reality is emerging: the commercial application of large AI models may still have a long way to go.
OpenAI's ChatGPT and GPT-4 models are certainly amazing, but how far are they from being implemented in the real sense? After all, AI models require a lot of computing power to train and run, which means high cost investment.
With the earnings outlook still uncertain, can Nvidia support its dynamic P/E ratio of up to 64 times with the imagination of AI?
What's more worrying is that the overall downturn in the semiconductor industry chain is dragging down Nvidia's performance growth. As the world's largest chipmaker, TSMC's revenue growth has begun to slow. The first quarter performance of the lithography machine giant ASML is directly declining, and this series of chain reactions will undoubtedly put pressure on NVIDIA's financial report.
When the entire industry chain is under pressure, even the leader of AI chips is difficult to stand alone. In such an environment, can Nvidia still maintain rapid growth?
After the stock price plummeted, the key to whether Nvidia can achieve a turnaround against the wind lies in whether its AI business can truly be commercialized. And this is by no means an overnight achievement. From technological breakthroughs to market applications, from proof of concept to profitability at scale, every step is full of unknowns and challenges. Even Nvidia needs time to prove the value of its AI chips.
After all, no matter how cool the technology is, if it can't be converted into real money, it will be difficult to support the bubble of high valuation. Is this AI feast the dawn of the scientific and technological revolution or the illusion of the bubble? Nvidia is standing at this critical crossroads.
The fundamental reason why Nvidia's stock price evaporated hundreds of billions of dollars overnight is also due to its high valuation bubble. Currently, Nvidia has a dynamic P/E ratio of 64 times, which means that investors are very optimistic about its future expectations.
In the context of the distant implementation of AI and the pressure on the semiconductor industry as a whole, is such a valuation reasonable? Under the bubble, risks are accumulating. If Nvidia's performance falls short of expectations, the stock price may experience even greater volatility. After all, no matter how beautiful the fantasy is, it can't withstand the torture of reality.
The future of Nvidia is hovering between hope and risk. The wave of AI is surging, but the road to implementation is bumpy. The semiconductor winter is cold, and the industrial chain is under pressure. Beneath the bubble, there is a lot of danger. The former chip giant is now facing unprecedented challenges.
How long does the AI bubble last?
Once upon a time, the concept of the metaverse was all the rage, and countless tech giants jumped into this virtual new continent in an attempt to seize the opportunity. However, when the enthusiasm of capital gradually cooled, the bubble of the metaverse also burst.
Nowadays, the wave of AI is sweeping the world, and NVIDIA has become the protagonist of this scientific and technological feast by virtue of its advantages in the field of AI chips. But behind the investor frenzy, a troubling question is emerging: Will the AI concept repeat the mistakes of the metaverse?
You must know that the road to AI industrialization is not a smooth road. While OpenAI's large models such as ChatGPT and GPT-4 are impressive, they are still far from being commercially available in the true sense.
Training and running AI models requires a lot of computing power, which means a high cost. From technological breakthroughs to market applications, from proof-of-concept to profitability at scale, every step is full of unknowns and challenges.
It is widely expected that the industrialization of AI will take at least 2-3 years. In this context, the disparity in input-output ratio has become inevitable. So, how long can investors' enthusiasm for the concept of AI last?
Even more worrying is Nvidia's soaring valuation bubble. Currently, Nvidia has a dynamic P/E ratio of 64 times, which means that investors are very optimistic about its future expectations.
Against the backdrop of AI landing in the distant future and the overall pressure on the semiconductor industry, NVIDIA's valuation return may only be a matter of time. If the performance falls short of expectations, the stock price may experience greater volatility. Historically, high valuations have always been a hotbed for bubbles. The future of Nvidia is hovering between hope and risk.
Epilogue:
The collapse of Nvidia's stock price indicates that the AI bubble is gradually emerging.
Although the future of artificial intelligence is bright, the road to industrialization is long and difficult, and investors must not blindly chase high. The history of Tesla's rise and fall may be a portrayal of Nvidia's fate.
Under the tuyere, opportunities and risks coexist. Only by remaining rational can we go through the cycle and have the last laugh. The tide of AI is rolling in, and enterprises are caught in it, and the future is uncertain. And Nvidia is standing at a crossroads.