Nvidia has captured the hearts of investors, but at least one market veteran refuses to show the artificial intelligence pioneer any love.
"Nvidia is the stock market's new Tesla, where the market blindly assigns a ridiculously high and unrealistic valuation," Trainer wrote in an email to Insider on August 24.
Trainer continued: "Investors should not be chasing Nvidia stock, as it is way too expensive.
"While we recognize that artificial intelligence is an exciting technology and Nvidia is a great company, investors must pay attention to a company's valuation," Trainer wrote.
To live up to its current valuation, Nvidia would have to increase revenue by 20% per year for the next 25 years, the investment research firm CEO wrote.
Persons:
Nvidia's, David Trainer, We're, SIMO
Organizations:
Nvidia, Bank of America, Rosenblatt Securities, KLA Corporation, Motion Technology
Locations:
Santa Clara, Nashville