Reported 5 months ago
Investing legend Rob Arnott expressed skepticism towards Nvidia's long-term market dominance, stating that the company "seems bubbly" due to its high price-to-sales ratio and profit margins, which may not be sustainable as competitors like AMD and Intel ramp up their efforts. Despite Nvidia's recent strong earnings report and bullish sentiment from Wall Street, Arnott believes that competition in the semiconductor industry will ultimately benefit consumers of artificial intelligence technology. The industry faces a 10% sales growth rate, and multiple chipmakers are racing to implement AI in their products, leading to increased demand for players like Nvidia, TSMC, ARM, Broadcom, and AMD.
Source: YAHOO