What's the danger? They slide back down to being just a gaming graphics card company with a $10 share price?
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> What's the danger? They slide back down to being just a gaming graphics card company with a $10 share price?
Nvidia dropping from being a $5 trillion company to a $242 billion company would be 1929 levels of bad.
Global economy end of days stuff, especially since Nvidia can't crash that hard without a lot of other stuff crashing with it.
How much in value could Nvidia safely drop and over what period of time for it be fine for greater economy? What level of correction would be manageable?
And I am pretty sure that their value will drop in 5 to 10 years.
Just for context, they make up 5% (yes 5%) of holdings in global index funds like VWRA.
https://stockanalysis.com/quote/lon/VWRA/holdings/
That is an astounding figure and means markets are highly imbalanced, unless you think Nvidia represents 5% of the global economy.
4.7% of the discounted future earnings pie of 3761 of the largest current publicly traded global companies.
That’s still a lot, but “the global economy” over the horizon where those earnings are not discounted to 0 contains a lot more than what’s listed in VWRA today.
There is a number of index funds holding 7.5% of NVIDIA.
This consolidation is scary. I've started putting a little bit in emerging markets and China. I cannot trust the US long term, hopefully I'm wrong!
I see China as very risky due to Taiwan.
I see Nvidia as very risky due to their chips all being fabbed in Taiwan and Taiwan is risky due to China.
That’s not even the primary reason I think Nvidia is risky, but it is another important one.
Nvida's action may affect the semi- marketing