Nvidia: The Paper Gains Need To Be Converted To Cash


  • Nvidia stock has been rising due to the retail investor excitement about the stock split.
  • At the same time, the sales growth is expected to slow, while the valuation multiples point to the bubble.
  • Further, the macro environment is deteriorating, with recession risks rising, which should negatively affect a cyclical company like Nvidia.

Nvidia research location. Nvidia is a graphics processing unit (GPU) designer.


NVDA is not a long-term buy and hold

Investors who bought Nvidia (NASDAQ:NVDA) stock last year or even recently this year have significant paper gains, as NVDA is up 174% YTD, and an astonishing 3547% over the last 5 years. Nvidia is

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Leave a Reply

Your email address will not be published. Required fields are marked *