Back in August 24, we wrote an article entitled, “Is NVIDIA the new Cisco?” and included the chart below.
Last August, the talking heads on business networks were all touting that this was a whole new paradigm citing NVidia still had decades to go of growing valuation based on the business case.
Where are we today?
NVIDIA seems to be following a similar correction to Cisco and Intel as compared in the chart to their heyday boom back in the dot com era. That’s not to say NVIDIA can’t shoot back up to new time highs but it can also just as easily go back down to all time lows.
We opted to stay out of this investment for now and instead have been focusing on cash flow companies. Our most recent trade was executing covered calls on Devon similar to what we did in this cycle here.
We’ll keep you posted so stay tuned, stay profitable and stay solvent…