Nvidia the Bubble to End All Bubbles

Nvidia (NVDA)'s 1Q revenue declined by 13.22% from one year ago due to collapsing demand from the Crypto mining industry yet the stock increased by 26.53% afterhours to a market cap of $955.61 billion due to hype from NVDA executives who mentioned "AI" exactly 100 times in its conference call. CNBC spent hours recklessly pumping NVDA stock for "beating analyst estimates" purposely failing to mention that the company isn't growing yet... it's all promises of growth in the future. NVDA is now trading for 36.93X its trailing twelve month revenue!

There is no doubt that AI is going to have a very big future, but NVDA would need to experience massive growth for many consecutive years to grow into its current valuation that already exists today, and by then there will be many companies offering competing chips causing the market to become commoditized with low margins.

Statistically, the odds of NVDA achieving positive returns over the next 5 years are less than 0.1%.

Statistically, the odds of iShares MSCI Brazil ETF (EWZ) achieving positive returns over the next 5 years are 99.99%.

Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.