The King Of The AI Bubble

Victor Dergunov Investing Group Leader Follow Summary Nvidia Corporation is downgraded from Buy to Hold due to mounting risks and the emergence of a $500B AI securitization scheme. NVDA remains central to the AI industry, but the new Wall Street-backed financing platforms signal a potential AI bubble reminiscent of the 2005-2009 MBS era. Recent AI securitization initiatives shift risk from core companies to global investors, raising concerns about overbuilding, unsustainable demand, and systemic fallout. I maintain a bullish SPX target near-term, but foresee a possible 50% market drawdown within 2-4 years, urging caution in AI and equity allocations. Looking for a helping hand in the market? Members of The Financial Prophet get exclusive ideas and guidance to navigate any climate. Learn More » peshkov/iStock via Getty Images I've been bullish on Nvidia Corporation ( NVDA ) for a while now. I called the bottom when Nvidia's stock dropped into " my optimal buy-in range ," $10-12 (spit adjusted), after its 70% drop in the 2022 bear This article was written by Victor Dergunov 56.53K Followers Follow Hi, I’m Victor Dergunov, MBA, and I’ve been an active investor for over 20 years. My passion for investing started early, and I’ve spent two decades honing strategies that consistently deliver results. Whether it's tech giants like Apple and Tesla or opportunities in commodities and crypto, I provide diversified insights to help you succeed. Join me, and let’s take your investing to the next level. Analyst’s Disclosure: I/we have a beneficial long position in the shares of NVDA, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. I am long a diversified portfolio with hedges. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.