Nvidia (NVDA) beat analyst expectations in the second quarter and the company gave an upbeat outlook for the third quarter. But the stock is still falling. Why?
That’s because a lot of the news was already priced into the stock, Radio Free Mobile founder Richard Windsor told Morning Brief. The company and investors expected the company to continue to grow, but not the extreme growth it saw as the AI market began to mature. But given Nvidia’s financial performance, the stock was a “shareholder’s dream,” Windsor said.
So what should investors do with the stock?
“The stock has gone up 10x in the last 18 months. Will it go up 10x again? No. This means the easy money in Nvidia is over,” says Windsor. For investors looking for alpha, now may be the time to sell. But for beta investors, the stock looks more attractive than its tech rivals, so from a valuation standpoint, Windsor argues, it may be worth holding on to.
To learn more about Windsor’s thoughts on the AI space, and specifically why he doesn’t think Tesla (TSLA) is an AI stock, check out the video above.
For more expert insights and the latest market trends, click here to listen to this entire episode of Morning Brief.
This post was written by Stephanie Mikulich.
