It’s basically a meme stock now. I don’t think anyone should be surprised by wide swings and irrational pricing going forward into the next few months.
I don't think the market leader for graphics cards -- a technically complex product compared to a bunch of brick stores selling video games -- is what you can consider a meme stock
Yeah, every company of any note is planning how to use AI, and a lot of the use cases are already proved out. This isn’t speculative nonsense. The question is how big does it get, not will it be big.
Crypto and blockchain never had an actual proved out use case. There was an interesting idea but no one ever could figure out a way it was useful. The costs associated were much higher than the risks of not using it.
People who think this is a meme aren’t paying attention, and they’re certainly not in the rooms of power where AI planning is happening at megacorps. I’ve been in them, and it’s serious and material and we are just now beginning to scratch the surface.
I’m saying all of that growth has been priced in for multiple years now. It’s likely to have very solid fundamentals and new relationships in enterprises everywhere for years to come. As such it’s ripe for overvaluation by both retail and institutional traders. If I had a horse in this race I would ride the wave for a while as others piled on, then take a nice honest profit before one of their many competitors turns in a healthy AI driven quarter like this. It will still be a strong stock, but expect some significant flux in a correction.
(Not sure if it's true), but a meme stock is one whose price is propped up by retail traders, and spreads through social media / word-of-mouth, as memes do.
Retail investors make up a low single digit percent of individual stock ownership. /r/wallstreetbets is not putting even a dent in a $1T company's stock price.
