Welcome back to my Crypto related Stock Newsletter!

The last 18 Months were outstanding for artificial intelligence and nearly every stock related to this technology went up. Some of these stocks outperformed the market so much, that many raised their eyebrows when already high valued stocks went basically to the moon over the last months.

In front of that hype and the beginning of the now starting of the transition to a A I driven world was NVidia. Due to covid and a very high demand on graphics cards during this pandemic, their sales and stock already went up a lot even before the recent AI boom. 

In my last report I already mentioned the downward potential of the stock and even though it went up by more than 10 percent after I posted, we are now starting to see a really bearish scenario.

But why am I focussing so much on Nvidia?

As the stock price of Nvidia went so high it accumulated a Company value of nearly 1.1 Trillion and was nearly seen as the "market maker" of the s&p500 during the last week. So it was basically that valuable, that it would just tell the direction for one sector. Its basically driving a whole market in a uncertain time where investors take out their money out of stocks to get into the more and more appealing bond market.

As last Time I would like to give a Bullish and a Bearish outlook in Nvidia to you

Bullish:

The Money Nvidia is making at the moment is outstanding. The growth rates are outstanding. The earnings per share? outstanding. On Paper Nvidia looks super healthy, is growing rapidly and has a Hugh potential upcoming market on their side. Even though it will take a lot to pump their value even higher as their P/E ratio sits around 190. If you trust in this stock and are willed to invest very long-term and forget about it for long, you could give it a try. 

Bearish:

The downstairs trend could go longer and this stock could correct to 320 or even further.  There are some dubious customers with dubios backed loans who ordered chips from Nvidia and ATM nobody knows what's really going on.

The value of the company is just to high. 

190 times the earnings is just to much to be a fairly valued stock. 

The CEO of Nvidia sold all of his stock, he got as a loan compensation for this year. 

Markets tend to be overhyped during the pioneer phase of new technologies.

Remember the .com bubble of 2001

So as the main indicator of A I is drowning, many other companys are starting to follow and we will now most likely go into a phase, where most of these company's will not reach their targets and only a few future big players will survive. This will be future value stocks so keep your eyes open during the next year's!

I really hope that my thoughts were able to give you some more ideas about the market.

Please leave some of your thoughts below if you like to share them.

This Article is NOT financial advise.

Enjoy your day and read you soon:)

For transparency:

I currently own a short position on Nvidia, even though I see it as a company of the future.

Note that this can change daily and I might don't own the stock anymore while you read ;)