Is Nvidia's retreat a harbinger of a bubble?

Nvidia shares fell after the release of the company's quarterly balance sheet. Even though the company reported an 85% growth in results in the annual comparison and a gross margin of 75%, the numbers were not enough to sustain the market's optimism.

Nvidia's performance is also seen by investors as a thermometer for the artificial intelligence sector, as the company's chips are present in the world's main data centers.

According to Marilia Fontes, presenter of Resenha do Dinheiro, the movement reflects a market increasingly dependent on expectations surrounding Nvidia and the AI sector.

"The market is very concentrated in Nvidia, with many investors positioned in the same stock. The company had been delivering increasingly better results and even stronger projections. This time, the guidance did not bring an additional improvement", explains Marilia.

Thiago Godoy, financial educator, analyzes how the market has reacted more to expectations than to companies' fundamentals.

"It's a classic case of a company healthy in practically all indicators, without a concrete reason for falling. But, when there is a very large flow of investors and very high expectations, any signal below expectations ends up generating distrust", he says.

"The narrative that is supporting the American stock market is AI. Any balance in this thesis makes investors worried, as practically nothing else is holding the American market back", says Bernardo Pascowitch, founder and CEO of Yubb.

The scenario also reignited discussions about a possible bubble in the technology sector, amid the strong flow of capital directed to AI companies.

"The last big technology bubble happened between 1999 and 2000, in the dot-com bubble. Michael Burry, for example, stated a possible bubble scenario", adds Pascowitch.

Dinheiro Review
Carried out with the support of B3 and the investment manager BlackRock, the program is presented by Thiago Godoy, the "Financial Daddy", Marilia Fontes, founding partner of Nord Investimentos; Bernardo Pascowitch, founder and CEO of Yubb, proposes a light, direct and uncomplicated approach to topics related to financial education and investments. The attraction addresses the main themes of the economy weekly with the informality of a conversation between friends - without compromising on analysis.

The Money Review airs every Friday, at 7pm, on the CNN Money YouTube channel and on Sundays, at 3pm, on CNN Brasil.

Source: CNN