History Says Nvidia's Stock Will Fall for 1 Simple Reason

By Travis Hoium – Feb 27, 2024 at 7:15AM

NASDAQ: NVDA

Nvidia

Market Cap

$2,193B

Today's Change

(6.18%) $51.03

Current Price

$877.35

Price as of April 26, 2024, 4:00 p.m. ET

Even the best companies on the internet took years, and sometimes decades, to live up to their bubble valuations.

For good reason, Nvidia (NVDA 6.18%) is the hottest stock on the market. The company is defining artificial intelligence and the shift in data center computing.

Technology has been through these shifts before, and even the most successful companies in the world weren't good investments at today's valuation for Nvidia. In this video, Travis Hoium shows how long it took Amazon, Microsoft, and Cisco to live up to the multiples we see for Nvidia today -- if they did.

*Stock prices used were end-of-day prices of Feb. 25, 2024. The video was published on Feb. 26, 2024.

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Travis Hoium has positions in Apple and Shopify. The Motley Fool has positions in and recommends Amazon, Apple, Cisco Systems, Meta Platforms, Microsoft, Nvidia, Shopify, and Uber Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Travis Hoium is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through their link they will earn some extra money that supports their channel. Their opinions remain their own and are unaffected by The Motley Fool.