AI Stocks 'Mania Appears To Be Headed To A Bad Ending,' Says Investing Veteran: 'Fear Stock Market Failure'
Portfolio Pulse from Benzinga Neuro
Bill Smead, founder of Smead Capital Management, warns investors about the potential risks of the AI stock boom and the over-reliance on the 'Magnificent Seven' stocks driving the S&P 500 to record highs. He compares the current market situation to past bubbles, such as the Nifty Fifty and the dot-com bubble, suggesting a major correction could be imminent. Smead's views are supported by concerns from other experts, including Jeremy Siegel's warning about tech stock valuations like NVIDIA Corp (NVDA), indicating a possible speculative bubble.
February 28, 2024 | 8:42 am
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NVIDIA Corp (NVDA) is highlighted as an example of soaring tech stock valuations, with concerns that it may be part of a speculative bubble.
Bill Smead's warning, supported by Jeremy Siegel's concerns over tech stock valuations, specifically mentioning NVIDIA Corp (NVDA), suggests a negative short-term impact on NVDA's stock price. The comparison to past market bubbles and the mention of a speculative bubble forming around tech stocks, including NVDA, indicate potential downward pressure on its stock price in the short term.
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