Nvidia suffered its worst fall in three months overnight after its latest earnings update failed to allay fears of an AI bubble. The shares ultimately closed down by more than 5% after initially trading higher after Nvidia beat estimates and delivered a 73% surge in fourth quarter revenue. Investors are becoming increasingly concerned that AI spending will be maintained, the bread and butter of the chipmaker’s business.
- We feel Nvidia is trading around the correct level, as it’s hard to imagine AI spending accelerating from current levels, i.e. this could be as good as it gets.
MM is neutral towards NVDA around $US185
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