Despite Nvidia's success, with a 198% increase in total gains for the year, some believe that the company's shares may be overvalued. Rebellion Research, a think-tank, suggested that Nvidia's stock price is in a bubble and warned that the current rush towards AI could be a modern version of the 17th-century tulip mania.
Key takeaways:
- Jason Hsu, the head of a quant trading fund, advised his mother to sell her Nvidia shares when they were trading at $250, which is 60% of their current price.
- Nvidia's stock has surged another 73% since the advised sale, with total gains for the year at 198% as of the last Friday's closing bell.
- Hsu joked about putting a 'hex curse' on the stock until it falls below $250.
- Rebellion Research, a think-tank, warned that Nvidia's stock price is now trading in bubble territory, comparing the rush toward AI to the 17th-century tulip mania.