The linked video is by a Wall Street professional who was a licensed broker with Merrill Lynch back in 1998. He argues with data. The sea of numbers he quotes is a bit overwhelming but it is supported by stock price charts freely available on the internet courtesy of Fool Mike Klein.
The most prominent is the ‘tech heavy’ NASDAQ (2000 dot-com vs. 2024 AI). Clearly the two are not comparable.
AI and semiconductor stocks like Nvidia (NVDA) and Microsoft (MSFT) have been climbing so fast that many are calling this a stock market bubble like the dot com bubble of 2000. But unlike in 2000, Generative AI has been adding massive value and revenues to companies ever since Openai released Chatgpt (and soon Sora). In this special episode of Funding Awesome, we look at A TON of data to decide whether we’re in a stock market bubble or whether the AI stocks we cover are still some of the best stocks to buy now!
E7: NVIDIA AI BUBBLE - We Can’t Stay Quiet Any Longer
I tried their Opera browser a long time ago and was not impressed.
The history of the Opera web browser began in 1994 when it was started as a research project at Telenor, the largest Norwegian telecommunications company. In 1995, the project branched out into a separate company named Opera Software ASA,[1] with the first publicly available version released in 1996.[2] Opera has undergone extensive changes and improvements, and introduced notable features such as Speed Dial.
Growth companies don’t pay dividends, they use the free cashflow to fund growth. AI is a growth industry at this stage of its existence. AI development is also very cash intensive, just look at how much money they throw at Nvidia. One comment about neural networks sticks in my mind, the correlation between size and results, it’s linear. That’s why we always talk about brain size, Size matters!
Opera vs. Amazon, Google, Meta, Microsoft, Meta, Tesla? Opera might be a good investment (no opinion) but not for AI.
Recency bias. The dividend yield used to be 1.7% 10 years ago. The massive increase in the share price doesn’t make them any less of a dividend paying stock.
The current dividend is 1/100th what it was 10 years ago on a percent basis. That literally makes it less of a dividend paying stock. We can play semantics “yes the DO pay a dividend”, or we can get practical and realize that no dividend investor is going to waste their time on Nvidia.
So which is it, in name only, 5%, or Apples to Aardvarks?
I would consider that Nvidia’s serendipitous entry into AI makes the legacy dividend irrelevant to the current situation
From Intel:
Two decades ago, GPUs were used primarily to accelerate real-time 3D graphics applications, such as games. However, as the 21st century began, computer scientists realized that GPUs had the potential to solve some of the world’s most difficult computing problems.
