Big Technology Podcast Decoding The NVIDIA Trade — With Michael Batnick
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Jun 26, 2024 Michael Batnick, managing partner at Ritholtz Wealth Management and co-host of The Compound and Friends Podcast, dives deep into NVIDIA's meteoric rise. He explores the complexities of valuing the tech giant amid volatility and AI developments. The conversation highlights an investor's painful missed opportunity and whether NVIDIA could become a staple like Apple. Batnick discusses the role of algorithmic trading in its growth, as well as strategies for navigating this thrilling but unpredictable market landscape.
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Unprecedented Growth
- NVIDIA's growth is unprecedented for a trillion-dollar company.
- The proper valuation is uncertain, but a premium is justified due to its rapid growth and unique position.
Valuation Challenges
- NVIDIA's valuation is high, but its rapid growth makes traditional metrics less applicable.
- Future earnings potential is key, similar to the dot-com boom.
Market Cap Drop
- NVIDIA lost $430 billion in market cap in three days, a record loss.
- This volatility is normal for a rapidly growing company.