Reported 4 months ago
Nvidia, the hottest megacap stock known for artificial intelligence (AI), is set for a 10-for-1 stock split. Despite being a stock-split stock and leading AI innovator, seven reasons suggest investors should exercise caution. Factors include potential peak in AI-GPU pricing power, rising internal competition from top customers, U.S. export restrictions to China, lack of insider purchases, historical investment trends, recession indicators, and concerning valuation akin to the dot-com bubble. The upcoming split may not mask underlying risks for Nvidia amidst its stock market euphoria.
Source: YAHOO