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Conflict Between AI Bubble Theories and Market Data

Zacks ·

NVDA NVIDIA Corp
$229.28 -0.52%
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  1. 1Ray Dalio warned that AI is a typical bubble on the verge of collapse.
  2. 2The S&P 500 index recorded a total return of 278% over the past 12 years.
  3. 3Nvidia's price-to-earnings (P/E) ratio is 34.67.

So what's the key point?

Ray Dalio warned that the artificial intelligence craze could be a bubble that soon bursts. The figure showing how expensive Nvidia's stock is relative to its earnings is 34.67.

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