Nvidia isn't always going to rule AI, strategist explains

Shares of Nvidia (NVDA) are trading lower after the chip giant executed a 10-for-1 stock split. Bokeh Capital Partners Founder and CIO Kim Forrest joins Catalysts to discuss the move and Nvidia's position in the overall AI landscape.

"I'm always cautious because we're assuming that, by the current price and the current thought behind Nvidia, that this company is going to rule AI forever and ever... I don't believe that. I believe that the huge margins are going to be attractive. And here's a crazy idea: maybe some chip designer will come up with an even better way to be useful in the AI ecosystem," Forrest explains.

She adds that while Nvidia certainly has a leg up on the competition, she wouldn't count out other players in the AI game.

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Melanie Riehl

Video Transcript

Taking a look at NVIDIA.

It's actually trading off just about 2% on the move.

Lower comes on the heels of the company's 10 for one stock split.

This is the first trading day that this has taken place.

And Kim, my question to you is, should, should investors be viewing this as a buying opportunity?

Yes, we're expected to see some increased volatility surrounding this name because of that retail investor interest.

But are you viewing this still that NVIDIA is priced now?

And it makes sense to buy in at this point?

Um I don't know, I mean, I think that it has run far and fast.

It has done an incredible job at creating a product that can be used effectively in this build out of generative A I especially and it's being used in server farms, but I'm always cautious because, you know, we're, we're assuming that um by the current price and the current thought behind NVIDIA that this company is going to rule A I forever and ever amen.

You know, everybody can close up and go home and do not, you know, that's it.

That's, this is the company, I don't believe that I believe that the huge margins are gonna be attractive and, and here's a crazy idea.

Maybe, maybe some chip designer will come up with an even better way to be useful in the A I ecosystem.

Um, they do have a, a really great um jumpstart on everybody else in the chip making business for A I, but I don't, I wouldn't count all other players out.

Well, Kim, we're gonna have to have you on again so that I can get into which player you think is most positioned for that, but really appreciate you joining us.

And thanks for the insight.

That was Kim for, she's both a capital partners, founder and chief investment officer.