Chip giant Nvidia (NVDA) shares are falling after the company completed a 10-for-1 stock split, and Kim Forrest, founder and CIO of Bokeh Capital Partners, appears on Catalysts to discuss the move and Nvidia's position in the overall AI industry.
“I'm always cautious because the current price and the current thinking behind Nvidia makes you assume that this company is going to dominate AI forever. But I don't think so. I believe the big margins will be attractive. And this is a crazy idea. Maybe chip designers will come up with even better ways to serve the AI ecosystem,” Forrest explains.
She added that while Nvidia certainly has an advantage over its competitors, it won't ignore other players in the AI game.
To learn more about expert insights and the latest market trends, click here to watch this full episode of Catalysts.
This post was written by Melanie Leal
Video Transcript
Let's look at NVIDIA.
In reality, there is about a 2% trade-off when moving.
The stock price fell following the company's 1-for-10 stock split.
This is the first trading day this has happened.
So my question for you, Kim, is should investors see this as a buying opportunity?
Yes, retail investor interest is expected to increase volatility surrounding this stock.
But are we still looking at NVIDIA's current price?
And does it make sense to buy at this point?
Hmm, I don't know. I mean, I guess it went far and fast.
The company has done a great job of creating products that can be used effectively, especially for building generative AI, and are being used in server farms, but I am always cautious because with current prices and NVIDIA's current thinking, I would assume that this company will dominate AI forever.
Once everyone closes up and goes home, that's it.
I mean, this is a company, I don't believe big profits are going to be attractive, and here's a crazy idea.
Maybe chip designers will come up with even better ways to serve the AI ecosystem.
Well, they have a very big head start over all the other companies in the business of making chips for AI, but I wouldn't discount all the other companies.
Well, Kim, we'll have to have you join us again because I want to hear which players you think are best suited, but thank you so much for joining us.
And thanks for that insight.
That was Kim, she's a capital partner, founder and chief investment officer.
