The Higher Nvidia Is, The Better The Short Play

The Value Portfolio
Investing Group Leader
(8min)

Summary

  • Nvidia has reclaimed its position as the world’s largest company by market cap, nearing a $3.5 trillion valuation.
  • Despite strong performance, Nvidia faces significant charges related to its China business, raising concerns about sustainability.
  • Q1 2026 earnings reveal ongoing challenges in justifying Nvidia’s current lofty valuation, especially given recent financial results.
  • The outlook remains weak, with notable risks to the investment thesis, making the current valuation difficult to defend.

Moscow, Russia - April 7, 2019: NVIDIA video chip on the motherboard

Antonio Bordunovi

Nvidia (NASDAQ:NVDA) is back to being the largest company in the world by market cap, as it approaches a $3.5 trillion valuation. Nvidia has outperformed despite taking several massive charges in relation to its China business

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This article was written by

The Value Portfolio
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The Value Portfolio specializes in building retirement portfolios and utilizes a fact-based research strategy to identify investments. This includes extensive readings of 10Ks, analyst commentary, market reports, and investor presentations. He invests real money in the stocks he recommends.

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Analyst’s Disclosure:I/we have a beneficial short position in the shares of NVDA 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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