Nvidia's valuation hits a new low in the AI ​​era, but investors are afraid to buy on dips

Odaily Planet Daily News Nvidia's stock is close to its lowest valuation since the AI ​​era, but growing risks are making investors cautious about buying on dips. The latest blow to the chipmaker is that Nvidia has recorded a $5.5 billion loss due to chip trade restrictions. The news heightened concerns that spending on AI could slow, especially as the escalating trade war further casts a shadow over the overall outlook for economic growth. "The outlook is not as convincing as it used to be, and you really have to make a lot of assumptions about tariffs, hyperscale companies, and macroeconomics," said Krishna Chintarapalli, portfolio manager and head of the technology industry at Parnassus Investments. "Because all these factors are stacked, uncertainty is much higher than before." Chintarapalli believes the stock is reasonably valued, but added: "If you want to buy here, you may be betting on hyperscale demand for AI." "Although the intention to invest in AI is there, they will always slow down at the margin," "Given the macroeconomic and tariff issues, you can't predict the pace of investment." (Jinshi)