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Summary
- Nvidia Corporation has ripped and charted new heights way above the previous November 2021 top, thanks to the Q1 FY2024 double beats and management’s stellar forward guidance.
- The demand for AI chips appears to be at a fever pitch, boosting Nvidia Corporation’s projected Q2 FY2024 top line by +54% QoQ/ +64% YoY, returning to its previous high-growth cadence.
- However, with the massive optimism baked into its valuations and stock prices, Mr. Market may have temporarily forgotten how painfully the tech bubble popped in 2022.
- For now, it seems that peak irrationality, recessionary fears, and generative AI hype may have unnaturally boosted Nvidia Corporation’s prospects in the intermediate term.
The AI Investment Thesis Is Too Volatile At These Heights
NVDA 2Y Stock Price
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It appears that the market and investors alike have chosen to be somewhat irrational again, pushing NVIDIA Corporation (NASDAQ:NVDA) to its highest-ever stock price of $401.11 at the time of writing.
Either way, the rally is partly attributed to the hype surrounding artificial intelligence, or AI, since the launch of ChatGPT in November 2022, further boosted by the management’s stellar FQ1’24 double beats and FQ2’24 forward guidance.
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