Nvidia ( (NVDA) ) has been popular among investors this week. Here is a recap of the key news on this stock.
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Nvidia has been a standout performer in the AI sector, with its stock soaring over 1000% in the past three years and contributing significantly to the S&P 500’s growth. Despite its impressive market value reaching $4 trillion, the company faces skepticism from notable investor Michael Burry, who likens the current AI enthusiasm to the late 1990s tech bubble. Burry has raised concerns about Nvidia’s stock-based compensation and accounting practices, and has taken a substantial position against the company through put options, indicating his belief that the stock is overvalued.
In response to Burry’s criticism, Nvidia has defended its practices, asserting that its compensation and accounting align with industry standards. While Burry’s bearish stance has sparked debate, Wall Street analysts remain largely optimistic about Nvidia’s future, with a majority rating the stock as a ‘Buy’. The ongoing discussion highlights the tension between those who see Nvidia as a leader in a long-term technological shift and those who fear the current market hype may not be sustainable.