Nvidia Became A Meme Stock And Is Overvalued By At Least 50 Percent For The Coming Decade

Nov. 15, 2021 6:15 PM ETNVIDIA Corporation (NVDA)AMD, INTC219 Comments
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The European View
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Summary

  • There is no such thing as eternal dominance, especially not in the innovation- and competition-driven tech sector.
  • In my view, Nvidia does not offer a good risk/reward ratio as an investment for the next five to ten years.
  • At its current price, the stock is overvalued for the next few years and offers nothing more than a massive downside potential of more than 50 percent.

Graphics Chip Maker Nvidia Reports Quarterly Earnings

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Introduction

NVIDIA's (NASDAQ:NVDA) share price has followed a parabolic trend over the last few weeks, even in a logarithmic chart. In addition to the prolonged growth that accompanied the general optimistic stock market sentiment and the hype

Chart
Data by YCharts

This article was written by

The European View profile picture
12.97K Followers
Runner of the TEV Blog | Lawyer For Competition Law And Antitrust | Private InvestorI am a long-term oriented investor and in my early thirties. I hold a law degree and a doctor in law and love investing and talking about my and others' investments. I regularly write about my research and investments on various investor platforms and on the TEV Blog. Living and working in Europe in an international law firm as a lawyer for antitrust & competition, I may have another view on American companies, especially when it comes to the reputation of a company or possible alternatives here in Europe. Hence, I try to build a diversified portfolio not only with American blue chips but also with smaller and maybe hidden European Champions. Given that, I am very sensitive and close to the political and economic fundamental environment in Europe. My readers benefit from this. When it was foreseeable that Qualcomm would be fined by the European Commission, I calculated the exact amount in advance and was able to inform my readers about it. The same applies to the European Commission's first interim measures against Broadcom, which were the first in two decades. Furthermore, I was the first analyst (to my best knowledge), who predicted without any doubts a dividend cut by Deutsche Telekom. **My articles represent my opinion only and in no way constitute professional investment advice. It is the responsibility of the reader to conduct their due diligence and seek investment advice from a licensed professional before making any investment decisions.**

Disclosure: I/we have a beneficial long position in the shares of CSCO, AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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