Nvidia Stock Risk Analysis: (Part 2)

Even though I am bullish on Nvidia stock, I think it is essential to consider the risks.
Fool.com contributor and finance professor Parkev Tatevosian evaluates the risks facing Nvidia stock investors.
A portion of this video is sponsored by The Motley Fool.
Visit fool.com/parkev to get access to my special offer.
The Motley Fool Stock Advisor returns are 650% as of 05/06/2024 and measured against the S&P 500 returns of 150% as of 05/06/2024. Past performance is not an indicator of future results. All investing involves a risk of loss. Individual investment results may vary, not all Motley Fool Stock Advisor picks have performed as well.
DISCLAIMER:
All content on this channel is for entertainment and should not be taken as professional financial advice.
#nvdastock #nvidiastockriskanalysis #nvidiastockrisks #nvidiastockrisky #nvdastockrisks #nvdastockanalysis #nvdastockprediction #growthstocks #growthstockstobuy #growthstockinvesting #bestgrowthstocks #topgrowthstocks #bestgrowthstockstobuy #topgrowthstockstobuy #topstockpicks #stockmarket #stocks #stockstobuy #topstockstobuy #beststockstobuy #stockmarketinvesting #investing #invest #investors #warrenbuffett #Cathiewood #investingeducation #valuestocks #garpstocks #stockstoinvest #parkevtatevosian #motleyfool #elonmusk #teslastock #tslastock #amznstock #aaplstock #pltrstock #palantirstock #sofistock #sofi #paypalstock #pyplstock #stockmarketbuys #stockmarketcrash #bullmarket #bearmarket #cnbc #cnbcstocks #cryptocurrency #gold #passiveincome #passiveincomeideas #passiveincomestrategies #dividendstocks #dividendinvesting #dividendstockstobuy #bestdividendstockstobuy #topdividendstockstobuy #dividendos #usastocks #usstocks #financialanalysis #technicalanalysis #fundamentalanalysis #securityanalysis #equityinvesting #dividendyield

[@andrewyang9752]

I have 1,500 shares of NVIDIA. I’ll be buying the dips. Thanks for the insight

[@MichaelLee-yh7ss]

You have too little.

[@afridgetoofar1818]

I will continue to hold my shares of NVDA, and buy the dip.

[@quickpstuts412]

Same.

[@Hashtag-Hashtagcucu]

Until you don’t see Bollywood doing films entirely in Ai there’s no bubble

[@dgo8509]

@@afridgetoofar1818 I’m buying the dip since January

[@momogetbackhere]

Why would people be mad about a dip? Stocks go up, they go down. If anything it’s the perfect buying opportunity!

[@neilvita3230]

I would buy if I didn’t already have 25% in Nvidia

[@ronmatthews2164]

Nancy Pelosi bought Nvidia last week. I think after their earnings call next month this stork will pop up big time. ❤😂🎉

[@ShaonHossain]

I'm your big fan. Watching from Japan!

[@parkevtatevosiancfa9544]

Great to hear!

[@Bravo6205-nd5pb]

Thanks, I bought additional 20 more shares today….

[@parkevtatevosiancfa9544]

Nice work!

[@dvb1701]

I added a significant account to my position when the stock recently dipped below $120 for a day or so. I've found my bias against buying when a stock is up a lot can be lessened by focusing on the total dollar amount by which my position is up, rather than the percentage as I have mostly done in the past 🙂 As an aside, I feel like the customer concentration risk is less serious because of the hyperscalers being the big customers. They're mostly turning around and leasing the compute power of those chips to their own customers, I believe, so they indirectly represent a large number of customers. Not to say it isn't a risk. Your point about pricing power is still very valid in that context.

[@stunnabreezy3]

The demand for Nvidia products and services are only getting stronger. Even if a customer cancels another customer is waiting to buy it up.

[@hmongCAM]

Thanks for going over these risks…not so bad of a risk for the most part, for the time being.

[@fondurieuropene1920]

By far most comprehensive analyses on you tube thematic chanels. Tks

[@rezarajabi9021]

Another excellent video , can we get a fresh Super Micro Computer stock analysis please ?

[@thecolligedropout2593]

Why is it people who don't have shares of nvidia are mad they don't have it. hoping it will crash the last 2 years and have nothing but negative things to say about it. Just be happy for the people that have it

[@quickpstuts412]

For the exact reason you just said. They are mad and so they looking to feel better about their decision not to buy.

[@jamesdy8345]

They can hope all they want, but that's all it is.

[@samsonbelai2489]

Lmao been thinking the same for a while

[@JeffreyElliott-ps2jn]

My brother-in-law told me to sell all of it several months ago. I decided he did not know what he was talking about. I am so happy I did not sell it. It has outperformed all of my other holdings. I am in it for the long haul, and I expect it to do quite well, at least over the next 2-3 years.

[@shannonthomass]

Life changing money opportunity is gone but that doesn’t mean there isn’t plenty to be made. Anyone bashing it is a trader and not investor

[@um31666]

Great video highlighting all the important risks!

[@parkevtatevosiancfa9544]

Absolutely!

[@quietStorm247]

Thank you, Prof. Parkev, for weighing the various factors for us.

[@parkevtatevosiancfa9544]

Glad it was helpful!

[@ULTRA-BOOST]

thanks as always!

[@parkevtatevosiancfa9544]

My pleasure!

[@bigwaidave4865]

Not everyone is destined to become an Nvidia multimillionaire. It takes big ones..

[@EliasFigueroa-tw6rt]

Thanks for this video

[@parkevtatevosiancfa9544]

Most welcome

[@bl1204]

Can you also do some videos on what you think are fair value based on current conditions of stocks?

[@GPSniper1]

thanks

[@parkevtatevosiancfa9544]

You're welcome!

[@geolykos]

Nvidia reminds me of Tesla back in 2020. Leader in both hardware and software and very hard for competitors to catch up. The only competition for Tesla after 4 years is China.

[@aravindrajendran5053]

Love from india

[@joelam931]

While I appreciate your contrarian views on the risks to NVDA none of them seem likely for at least 2-3 years. Their entire inventory both now and until the end of 2025 is sold out. Couple that with their CUDA software and bringing out new more powerful chips every year for the next 2 years and beyond and I do not see many risks at all for NVDA. Your video is behind the times with China too as the NVDA China approved chips are selling better in China than the Chinese version of those GPU chips. So with all of that please tell everyone where are the Real Risks to NVDA? Unless AI falls off a cliff, which is not likely I see smooth sailing ahead for the stock other than the occasional pullback due to profit taking which is happening now and may continue in July before leading up to the next quarterly earnings report in August 2024. Where once again NVDA will beat the estimates and soar above $150 on its way to $200 a share. Also you failed to mention how NVDA is buying back its stock that it just split which is also a positive for the share price going forward.

[@ssing7113]

This is what everyone said before hitting the iceberg 😂😂😂😂 If you see no risks you should never invest ever 😂 I’ll give you a big risk that would tank nvidia 50% overnight. China taking Taiwan Ever heard of a recession. Companies pull back spending in recessions Ever heard of a depression. It’s only the naive who don’t account for risks / opposition / blunders / mistakes / accidents / black swans / Jensen photo leak doing blow off a girls hoots / bad news

[@skippzz]

What are your thoughts on the recent downgrade?

[@jumpinwfarm683]

Isn’t it to be included as a risk that the CEO has sold over 100,000 shrs recently and can still sell another 600,000 in the near future?

[@Shepp6769]

Let’s not forget Elon is building the super AI computer with NVDA chips. Which wasn’t mentioned in the list of X buyers As one big buyer levels off others who’ve been waiting in the queue will fill in the gap

[@jumpinwfarm683]

It seems like the greatest risk to nvda shareholder (vs traders) is holding during an extreme market-wide correction. Price could plunge to $100-90. Anyone worried about that? I will buy your shrs and add them to my own…. Resistance is etc etc.

[@evolvc]

We all know about nvidia. Make a video about cybin 👩‍🚀🚀

[@hungsolo8948]

Don’t these companies sign 5 to 10 year contracts with NVDA? They can just stop buying any time and cancel orders? 😅 🤔 Seems like every channel I watch has a different thing to say about this.

[@BobbyDon8]

I'm thinking about selling all stocks and sitting on the sidelines for a while. The economy may be heading for a recession

[@AC-jk8wq]

And it may be heading higher… without you. Risk to stay in… Risk to get out… You decide! 😃

[@JeffreyElliott-ps2jn]

The discount rate will come down. The downward momentum in unemployment is strong enough to reach the Fed's desired 2% inflation. For these reasons, I don't see the risk you are so afraid of. Pay attention to the Federal Reserve's announcements, and make sure you buy back in before the lowering of the discount rate. That's all the advice I can give you. Personally, it doesn't directly affect my lifestyle either way. It may be different for you. Keep in mind, buy and hold has proven to provide very good results. Good luck in your trading.

[@Shepp6769]

Only Taiwan invasion or other big China or Russia move is going to have a big negative impact on the market

[@admintuning]

Sold 400 shares at 127/ea yesterday. Still got 800 shares in hand. 🤝🏼

[@jjsc3334]

NVDA is only an assembler, it is overrated. same as TSLA, the pioneer won't always be a winner.

[@methlalpallewatta9947]

No. TSMC manufactures them. Nvidia provides the design and is a fabless semiconductor company.

[@dgo8509]

Lmao😂this guy is low information handicap if I’ve ever seen one ☝️

[@larryhall83]

Agree with other person that replied. These are all NVDA products, designed and created for specific purposes and target customers. TSMC is the assembler.

[@ssing7113]

Umm how is Tesla comparable to nvidia? I’m not even going to start the political game of what Tesla has managed to achieve against the onslaught of legacy auto. Nope. Look it up yourself. Read the books out there.