The Compound on $NVDA (Nov 6, 2026)
Nvidia is in a bear market, down 21%; the speaker questions its 14 times profits valuation amid multiple compression and warns that if earnings are 5% below expectations over the next twelve months, the stock could fall 40%.
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You have companies like Nvidia that are down by 10 %.
Jensen, they never stop talking. This... they did n't even think to raise this issue.
So, on Monday, we had a great day in the stock market, but Nvidia was down 3%. Yesterday we had this really strange day where the S&P rose 1.7% and Nvidia and semiconductor stocks were slaughtered.
Let me tell you about the decline of Nvidia.
The problem is that Nvidia is finally in a bear market. It has decreased by 21%. The problem is that everyone is saying, "Oh, Nvidia is worth 14 times the profits." Well, is that really the case?
Over the past 12 months, we have witnessed a compression of multiples for, not just for, most of the world's largest companies such as Broadcom and Nvidia that are selling under this boom.
If Nvidia's earnings are 5% lower over the next twelve months than we expect, the stock could fall by 40%.
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