Nassim Taleb Says Nvidia's Selloff Is 'Just the Beginning' of AI Stock Declines
Nvidia (NASDAQ:NVDA)'s sharp decline on Monday is just the beginning of more losses to come, according to Nassim Taleb, the author of The Black Swan and a well-known risk analyst.
Warning! GuruFocus has detected 3 Warning Signs with NVDA.
Speaking at Miami Hedge Fund Week, Taleb told Bloomberg News that Nvidia could face drops two to three times the size of Monday's 17% decline, which wiped out $589 billion in market value. This is the beginning... of an adjustment of people to reality, Taleb said, adding that Nvidia's stock performance is no longer flawless and is showing early cracks.
The selloff came as investors worried that top U.S. tech stocks may be overvalued, particularly in AI, following the launch of Chinese AI startup DeepSeek's R1 LLM model, which is reportedly far cheaper to train than U.S. models. Taleb compared the situation to the 1999 dot-com bubble, saying that early internet investors bet on AltaVistaonly for Google (NASDAQ:GOOG) (NASDAQ:GOOGL) to emerge later and dominate.
Nvidia is down more than 16% over the past five days and over 11.5% over the past month, raising concerns about AI stock valuations.
This article first appeared on GuruFocus.
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