Nvidia's valuation hits a new low in the AI era, but investors are afraid to buy on dips

Mars Finance News: Nvidia's stock is approaching its lowest valuation since the AI era, but increasing risks are making investors cautious about buying the dip. For this chip manufacturer, the latest blow is a $5.5 billion loss due to chip trade restrictions. This news has intensified concerns that spending on artificial intelligence might slow down, especially as the escalating trade war further overshadows the overall economic growth prospects. Krishna Chintarapalli, portfolio manager and technology sector head at Parnassus Investments, stated: "The outlook is not as convincing as before, and you really must make many assumptions about tariffs, hyperscalers, and macroeconomic factors." "Because all these factors are compounding, uncertainty is much higher than ever before." Chintarapalli believes the stock is reasonably valued but added: "If you want to buy in here, you might be betting on hyperscale demand for AI." "Although the intent to invest in AI exists, they always slow down at the margin," "Given macroeconomic and tariff issues, you cannot predict the pace of investment." (Jinshi)