With shares up by almost 28,000% in just 10 years, Nvidia’s (NVDA 0.69%) rally will go down in history. A $2,000 investment made in 2014 would be worth $560,000 today — more than enough to buy a medium-priced home in cash. But returns like that probably won’t continue forever.
New investors must decide whether the risks of holding Nvidia stock today justify the potential rewards. Let’s discuss two reasons why it might be time to sell the stock, and one reason to consider buying more.
Experts are beginning to sound the alarm
After almost two years of artificial intelligence (AI)-driven growth, Nvidia’s future is now intimately linked to the future of this one industry. Most retail investors are not fluent in this highly technical field, so we must rely on experts to crunch the numbers. Some of their perspectives are alarming.
According to MIT Professor Daron Acemoglu, only around…
