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Nvidia’s Investment Debate: Buy or Avoid?
Two prominent analysts, Louis Navellier and Eric Fry, are divided over Nvidia’s (NVDA) stock. Navellier believes Nvidia is a strong investment, citing a 62% year-over-year revenue increase to $57 billion in its latest earnings. Fry, however, warns about high valuations, noting a decrease in gross margins from 76.4% to 73.4% and increased competition from tech giants developing their own chips.
The high demand for AI-driven technologies positions Nvidia as a foundational player in the sector, with $500 billion in booked orders for 2025-2026. However, key investors, including Peter Thiel and Michael Burry, are reducing positions, which Fry interprets as a sign of rising risk. Fund managers are also holding historically low cash levels at 3.7%, historically a “sell signal” for equities.
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