11 August 2023
Despite the recent tech rally driven by generative artificial intelligence, concerns rise as Nvidia’s shares have almost tripled in 2023, with some attributing this surge to speculative mania. Its substantial weight in benchmark stock indexes poses risks to everyday investors regardless of their belief in AI. The rapid stock growth of major tech companies has intensified worries about market concentration. With Nvidia trading at 41 times its last 12-month sales, doubts emerge about its valuation versus actual growth, suggesting potential for a significant market correction reminiscent of the dot-com bubble crash.