Former NYSE trader Stephen Guilfoyle says he’s lost opportunity every time he’s traded Nvidia when discussing the stock’s sky high valuation.
Transcript:
Stephen Guilfoyle: Everyone I think, has to be obsessed with Nvidia. I’m invested in the name myself. Not as much as I was.
I took a little bit off the table just to be out front with that. But every time you take a little bit off of NVIDIA because it hits your target price, it comes back and slaps you in the face again.
So even though it’s been a highly profitable trade, I’ve lost opportunity every time I’ve sold something. So traders, investors have to be watching, probably want to be participating to some degree in Nvidia.
It is the bellwether for the generative AI revolution. It’s a representative of what the Amazon’s AMZN, the Google’s GOOG, the Microsoft’s MSFT, what all of them are now spending in terms of capital expenditures on keeping up with each other and competing.
It is the goal if you’re a stock like Advanced Micro Devices AMD or Marvell MRVL technology, it is who you’re chasing in terms of trying to gain market share.
Although their moat, their technology has been really defensible to this point, the we’re seeing maybe a slight deceleration in the pace of growth of sales, but I don’t think it’s anything that should scare the investor.
It’s really it will come down to valuation. And is valuation a little bit high for Nvidia? Sure, have they earned a high valuation. Yeah, they certainly have. And maybe. Maybe it deserves to be even higher. I guess we’ll soon find out. And they also have maybe perhaps the coolest CEO in the business. If I am a Lisa Su fan, so I don’t know how much I can stick to that. But Jensen Huang is simply the Fonz.
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