Nvidia: A Spot of Trouble, Perhaps?

Nvidia, you see, has been rather frightfully successful. A beneficiary, as they say, of this current obsession with artificial intelligence. Their graphics processing units, quite powerful, naturally, underpin a good deal of the AI fuss. A five-year climb of 1,230% is, well, a bit vulgar, don’t you think? But undeniably effective.

Now, it’s down 11% from its peak. A momentary wobble, naturally. The usual suspects are wringing their hands, questioning if the upward trajectory is… waning. Others, bless their optimistic souls, see a ‘buying opportunity’. As if the market were a particularly predictable game of bridge. One suspects both are equally prone to disappointment.

The question, really, isn’t if Nvidia will continue to climb, but whether the current valuation is… sensible. A rather tiresome word, ‘sensible’, but one must occasionally employ it.

Nvidia and the Pick-and-Shovel Play

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Is the Price Justified? A Difficult Question

Those who missed the initial ascent are now dithering about whether it’s ‘too late’. As if the market were a particularly punctual train. One must admit, with such stellar growth and relentless publicity, the shares aren’t exactly cheap.

A forward price-to-earnings ratio of 23.9. Not outrageous, certainly. But hardly a bargain. Still, a dip is a dip. And one shouldn’t be too proud to acquire a perfectly serviceable asset at a slightly reduced price. Though one wouldn’t want to be seen rushing into anything, naturally.

The truth is, Nvidia isn’t about the AI hype. It’s about a fundamental shift in computing. And those, my dear, are rarely cheap. One simply hopes the next wobble is a little more… substantial. It would make things so much more interesting.

2026-01-27 12:52

Nvidia and the Pick-and-Shovel Play

Is the Price Justified? A Difficult Question

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