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- By now, investors are probably tired of reading about the repeated bearish arguments against Nvidia Corporation, including over-reliance on few customers, competitors catching up, and the repetitive comparisons with the stock history of Cisco Systems.
- However, there is actually a much greater risk, backed by a more apt historical comparison, that poses a significant threat to Nvidia’s most powerful moat factor.
- As an existing shareholder, I would no longer advise investors to buy the stock at these levels, given how this growing risk impacts the long-term growth story.
Followers will be aware of the fact that I have been bullish on NVIDIA Corporation (NASDAQ:NVDA) since early 2023, advising investors to buy the stock amid the onset of the AI revolution.
Striving to uncover long-term investment opportunities (10+ years) through in-depth research and analysis. Nexus Research seeks to evaluate and compare business strategies to determine a company’s potential for market penetration, revenue growth and profit margin expansion. During market downturns, stocks often become cheap very fast, creating various investment opportunities at once. Amid such circumstances, investors often lack the time to research a company thoroughly before making investment decisions, out of fear that they will miss out on attractive entry points. Therefore, Nexus Research not only uncovers present-day buying opportunities, but also offers extensive insights on solid companies with promising growth potential despite expensive valuations, thereby allowing investors to be ready and make well-informed investment decisions when the stock becomes more reasonably valued.
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