Despite Nvidia's meteoric rise, the stock may be overpriced.
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00:00NVIDIA's risk is the fact that they've come so far so fast. I mean it's been a 10x increase in
00:06value over about two and a half years. It's been an amazing rise for NVIDIA. It's funny you mention
00:11that. I'm watching it every day because I'd love to buy it. I don't own it currently except in
00:16index funds and I'd love to get a much higher position in it but I don't think it's cheap
00:21enough. You look at their margins and a lot of people have been saying hey it's cheap vis-a-vis
00:25the S&P 500 index because of all the growth they've gotten. Well that's true on the nominal
00:30surface of things but if you extrapolate their 70% plus margins into the future that's true.
00:38If you think their margins are going to compress due to exceeded competition from other rivals over
00:45time which I think is the case, it's not so cheap. So you can afford to be patient. I think NVIDIA's
00:51got a lot of shoppiness ahead of it so I'd be circumspect and just watch it and bide your time
00:57for now. I think it's a great company but I think the price right now is not attractive. I think
01:03it's very similar to Apple in that the price is just too high. Apple doesn't have near the growth
01:09that NVIDIA does currently but I think both stocks just the price is just not attractive. You just
01:15want to buy something in the grocery store so to speak when it's on sale not when it's
01:20at the premium price and NVIDIA is still at the premium price.