Comment on Peter Thiel dumps entire Nvidia stake, slashes Tesla holdings amid bubble fears
UnderpantsWeevil@lemmy.world 4 days agoEven if Nvidia stocks crash, they will recover.
NVIDIA is up 1500% in two years, with a p/e ratio of 56 in a market that’s absolutely ravenous for semiconductors. The idea that the demand for semiconductors can flatline as data center production stales and NVIDIA’s valuation will just rebound to its current high is… well, it’s highly speculative what NVIDIA is going to do, but I wouldn’t bank on the current status quo.
If nothing else, it’s a stock that can safely be described as “overvalued”. Selling now isn’t a bad idea.
sugar_in_your_tea@sh.itjust.works 3 days ago
Yeah, a “safe” PE ratio is around 20. The PE of the entire market is about 28, so investors are basically saying Nvidia is going to grow at double the rate vs the rest of the economy.
I think that’s bonkers, but what’s even more bonkers is Palantir with a ~1700 PE ratio. That’s ludicrous.