Valuations really aren't that crazy, but the incestuous deals between Nvidia, Oracle, and OpenAI might cause a decent correction. I'm not too worried about my portfolio personally. It'll be a small bump in the road and you're better off not trying to time the market.

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SecretDreams 3 hours ago | parent [-]

> Valuations really aren't that crazy

Okay

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hypeatei 3 hours ago | parent [-]

What public company is massively overvalued in your opinion? Nvidia right now is trading at 44 P/E which is higher than the S&P average, sure, but not anything like the dotcom bubble with a median of 120x earnings.

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B56b 2 hours ago | parent [-]

The problem with this hype cycle has always been that the hyperscalers are pouring unbelievable amounts of capital into a technology that hasn't proven it can generate the revenues needed to justify that.

Nvidia might have an ok P/E right now, but the question is if the industry can sustain buying over $50B of GPUs every quarter(or that it even needs to).

	▲	SecretDreams 2 hours ago \| parent [-]
		This exactly. How sustainable are the current spends in the wake of needing ROI against these spends in the not too distant future? And who will be able to afford an upgrade cycle only 2-3 years from now given none of the capex spent will have hit positive ROI 2-3 years out. Will everyone just accept negative ROI in the name of hype? Will scalers be able to meaningfully increase service prices without eroding customer interest? These are all unanswered questions that a simple PE statement can't support.