In the high stock market valuation of Nvidia technology company shares, are fundamental factors still dominant or rather the subjective conviction of stock investors?

Is the high stock market valuation of the shares of the technology company Nvidia still dominated by fundamental factors or rather by the subjective conviction of stock market investors about the high growth potential of the company determined by the sale of microprocessors used for the development of servers, information systems equipped with artificial intelligence technologies, the development of IT applications, AI applications available on the Internet, the development of Internet intelligent agents, chatbots, etc.?

What do you think of the stock market valuation of Nvidia's technology company shares? Is this valuation fully justified when we conduct a full, multi-faceted strategic analysis, analysis of the economic and financial situation, fundamental analysis of the stock valuation of this company?

Do any of you conduct research on this issue?

If so, please join our discussion and provide the results of your research.

Is Nvidia stock overvalued since the market valuation of this currently most expensive technology company equals a significant portion of the economic growth of the entire US? What are the problems in terms of objectively conducting a stock market valuation of Nvidia technology company shares based on fundamental analysis?

Stock analysts so far do not claim that the stock market in the segment of technology companies and the overall stock market for the time being is rather still a bull market and not necessarily a speculative bubble. The basis for such claims is the strong financial results achieved by these technology companies in recent quarters. But the situation in this regard is changing dynamically. And the valuations of listed companies in situations of strong overvaluation or undervaluation have often been susceptible to a variety of factors, not only fundamental but also subjective, emotional factors, falling within the scope of issues of the psychology of financial markets.

I described the effects of monetary policy on the situation in the capital markets in this article, among others:

Analysis of the effects of post-2008 anti-crisis mild monetary policy of the Federal Reserve Bank and the European Central Bank

Article Analysis of the effects of post-2008 anti-crisis mild moneta...

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What is your opinion on this issue?

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I invite everyone to join the discussion,

Thank you very much,

Best wishes,

I would like to invite you to join me in scientific cooperation,

Dariusz Prokopowicz