14 hours ago
Nvidia opened at a record high. Are we seeing a tech bubble?
Nvidia (NVDA) kicks off Thursday's trading session at a record high opening price just after hitting a fresh record closing price on Wednesday. Between the artificial intelligence (AI) chipmaker's recent record-setting run and Circle's (CRCL) monumental post-IPO rally, some on Wall Street are worried about a potential tech Finance Senior Reporters Allie Canal and Ines Ferré weigh in on today's Opening Bid with Yahoo Finance Executive Editor Brian Sozzi and Fed Watch Advisors chief investment officer and founder Ben Emons.
To watch more expert insights and analysis on the latest market action, check out more Opening Bid here.
Simple question. Are we witnessing another tech bubble? Now, you and I have been here on Yahoo Finance for a good bit. We've seen various bubbles. Cannabis stocks, I think fell into our tenure. We've seen it with various AI stocks.
From your vantage point, are we witnessing another one?
Another hot take for you, Brian. No, I don't think we are. I think AI is going to lead to insane productivity. I don't think that's being accurately priced into this market, priced into these tech stocks. I've been speaking with a lot of Wall Street strategists this week, and they tell me that Nvidia's undervalued, that other mag Mac 7 names are fairly valued, that this market is not stretched at all, that valuations are actually kind of low at this point. And there's a lot of cash on the sidelines. A lot of folks have been repositioning their portfolios. They've been putting money into defensive sectors. They came into the year maybe a little bit overweight on some of those tech names, so they pulled back a little bit, but now at this point with tech leading the way higher once again, there's this rational thinking among their, especially among retail investors, that maybe they should be a little more aggressive, a little more overweight on the tech trade because there's just so much growth at this point. And with AI just continuing to rapidly expand with these earnings, I mean, let's let's be real. We're not at the levels maybe of Nvidia that we saw a few years ago, but these are still pretty insane numbers. And I think a lot of investors have just gotten used to that. And compared to other stocks out there, especially small cap stocks, these larger companies are just able to weather a lot of this volatility, able to weather a lot of these risks in a way that some of these other players just can't. So, I'm bullish on tech, and I think we still have more room to run.
All right. Well, I appreciate that high-level analysis there, Ally. Um, I'm going to go on the other side. I think we're seeing some bubbly activity, and Anna is going to come to you on this one. Circle, are you kidding me? The move in the stock since the, uh, since its IPO early this year. I think I checked the Yahoo Finance charts yesterday. Um, stock's up like 800% since the IPO. What? I mean, that has to be bubble activity.
Yeah, so that IPO price was $31 a share, and you can take a look. It's at 213. Um, look, it depends on which analyst you talk to because, uh, stable coins, this is huge, uh, and it's going to what the market is doing right now is it is, of course, pricing in all of this growth ahead of time. You do have an analyst that just came out with a neutral rating for Circle just basically saying that all this has been neutral. Yeah, a neutral because talking about rising competition because of the Genius Act that's expected to, uh, be become into law later this summer. Um, that is going to increase the amount of entrance that you have in the stable coin space, and we have seen deals happening. We have seen a lot of activity in that area. And so what he's saying is that you're going to have an increase of competition, and, uh, Circle is going to, you know, face that eventually. But nonetheless, you do have price targets in the 200s for the stock. It's a 213 right now.
And of course, you can catch the sentiment on Circle on the, uh, Circle ticker page on Yahoo Finance, check all the ratings. Uh, we're gonna leave it there, though. Alex Canal, big hot takes. Anna has big hot takes. Ben Emons, always good to see you, man. Had a couple big takes of your own. Appreciate it.
