Nvidia is set to release its fourth quarter earnings results this Wednesday, February 26. However, not all experts are optimistic about the semiconductor manufacturer. David Bahnsen, CIO of The Bahnsen Group, recently shared his bearish views on Nvidia during an episode of Yahoo Finance’s Catalysts series.
Bahnsen argues that Nvidia’s valuation is at a “premium” compared to other AI companies and S&P 500 names. He acknowledges that the company has earned its position through strong performance, but disagrees with the notion that it operates in a monopoly.
“There’s tons of competition,” Bahnsen said. “Nobody thinks Nvidia is a monopoly. The earnings multiple estimates are based on them never having competition.”
Source: https://finance.yahoo.com/video/bear-case-nvidia-ahead-q4-164249454.html