As 'AI Bubble' Chatter Grows, Is Nvidia Stock Overvalued?

For Nvidia (NVDA) stock, record highs have become a near-daily affair for the last several months. While there have been a few brief periods of weakness, the shares have been in a strong uptrend since the beginning of 2023.

Many were in disbelief when Nvidia’s market cap first surpassed $1 trillion back in May 2023, shortly after the release of its fiscal Q1 2024 earnings. NVDA stock went on to gain 240% on the year, eventually emerging as the best-performing S&P 500 Index ($SPX) stock of 2023 in the process.