AI Era Valuations: Nvidia Surpasses A Peak DotCom Bubble Multiple

[@RyanOConnellCFA]

Here is the link to the full article and code: blog.jetbrains.com/datalore/2024/08/07/analyzing-financial-bubbles-with-python-and-datalore-ai/

[@user-pw2qm2zk6b]

Very interesting video! It's wonderful to see you using AI to assess NVDA in that final graph. These are interesting times!

[@BlueRider-t4u]

Hi Ryan, Amazing analysis! Could you please link the article that you described in your video?

[@RyanOConnellCFA]

Thank you for the reminder! Here is the link to the full article and code: blog.jetbrains.com/datalore/2024/08/07/analyzing-financial-bubbles-with-python-and-datalore-ai/

[@joseleon8235]

Short sell Nvidia could be the path to go based on your systematics. But what if AI will be totally disruptive. Great insight! One question could be in which other time a game change technology could keep Nvidia path?

[@RyanOConnellCFA]

I do believe that AI will be totally disruptive. So it is quite hard for me to make a call one way or another. What I did with this info is take my gains on Nvidia in tax protected accounts and re-invest the money in areas with lower multiples like small cap stocks. And if Nvidia has a large fall, I would be interested in buying back in. The interesting thing about the DotCom bubble is that this was at the beginning of the commercial aspect of the internet which has been a fairly game changing technology but the valuations proved to be too high at that time

[@ohyesucan]

thx you

[@RyanOConnellCFA]

My pleasure!

[@hyperadapted]

alright, Ill get out of my positions and short Nvidia instead.

[@RyanOConnellCFA]

Be careful! It really is a difficult stock to try to predict the future direction of at this point

[@hyperadapted]

@@RyanOConnellCFA true however I was just waiting and now I am more sceptical as the valuation is just out of proportion. I understand that they are the quasi-monopolists that produce the shovels to digg for gold but: a bubble is a bubble is a bubble :)

[@RyanOConnellCFA]

@@hyperadapted Well said. And one other thing I worry about with NVDA is these super profitable monopolies don't seem to typically last long before another competitor steps in with a decent alternative. I wonder how long it was after the iPhone 1 came out before a competing option became available from another company