$NVIDIA (NVDA.US)$ Disclaimer: I day trade options (both cal...
Disclaimer: I day trade options (both calls and puts) and I am not bull, neither am I shortie.
Just to share my 2 cents. I see and read that many people compare the current AI trend to the Dot Com Bubble - which is not entirely surprising or wrong to think so. However, we have to look at the details and see how is it similar or how is it different from the Dot Com Bubble.
Right off the bat, the 1999-2000 Dot Com Bubble., Nasdaq and most tech companies have a PE of 200x with Nasdaq composite rose by 2700+%, this alone, is alot higher than the current PE and situation. Most of the companies’ PE are still reasonable currently (except for Tsla, but its a story for another day)
Furthermore, along with the freakingly high PE and rise, durng the Dot Com Bubble period, there is no substantial earnings or solid business model to generate revenue from Internet or World Wide Web application, many companies obtain IPO even without any solid proof of earnings.
This is very different from the current AI trend. Being an employee in Healthcare/Hospitals, I see for myself, first hand, how widely AI is used in Patients Care, Radiology Interpretation, Pharmacy Dispensing. in short, AI application is real and is already being applied widely.
AI is indeed the future, and generally speaking, having been in the US stock market for years, one phenomenon is for sure “its cyclical, and companies with good fundamentals will rise whenever they fall”.
NVIDIA, together with Amazon, have survived the 1990s Dot Com Bubble and grow stronger, I believe they will survive and thrive, as their fundamentals remain unchanged.
So if you are a long term investor, stay the course during these stormy days, do your own due diligence and ignore the external noises.
Cheers
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uthetrilili : Amen
FinancialFree8888 : You are right. AI will change all aspects of life and make human life better.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
102450266 : AI is the future
ChartTrader : AI is controlled by a few company for real use case
Yort E : Right on!
103603836 : Yeah external noises is the key point. Debating between the bears & bull camp will never end. As long as u r a long term investor, hardly u will make any loss. Right now Extreme Fear is driving the mkt. Shrewd mkt players will know what to do now
Ultratechman : it's vix making it seem like the markets crashing even though it's not. anyone that's been in certain chat rooms has seem me explaining this several times sonce april. i was doing nothing but trade vix/spy for a year straight and I've seen first hand how they correlate. in theory a high market will get crushed under vix at a certain point and people will think it's crashing but it will pop back up after killing shorts