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What Nvidia’s market valuation says about where the stock will be in 5 years - MarketWatch

1. Nvidia's performance contrasts strong earnings with falling stock prices. 2. Cumulative EPS rose 800%, yet stock dropped post-earnings report. 3. Current evaluations indicate Nvidia’s stock may be overvalued. 4. High P/E realism concerns highlighted in future projections. 5. Long-term returns may not justify investment risk for Nvidia.

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FAQ

Why Bearish?

Nvidia's stock drops despite record EPS growth suggests overvaluation concerns, similar to prior investor patterns with Qualcomm.

How important is it?

Investor caution over Nvidia's lofty expectations could influence market positions significantly, as historical overvaluation trends repeat.

Why Long Term?

As projections depict inflated valuations, negative sentiment may persist over the long-term, potentially hindering stock performance.

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