Siegel stated in his latest weekly update that the slump in Nvidia stock, despite strong third-quarter results, suggests the decline is driven more by other factors than by the company’s results.
Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania’s Wharton School of Business, on Tuesday stated that investors are not as concerned about Nvidia Corp.’s (NVDA) numbers as they are about the lingering anxiety resulting from investments in artificial intelligence (AI) technology.
Despite Nvidia’s strong third-quarter (Q3) performance, the stock declined after an initial rally fizzled out. Siegel stated in his latest weekly update that this suggests the decline is more due to other factors than to the company’s results.
“The market is wrestling less with Nvidia’s numbers and more with crosscurrents and lingering anxiety about whether the extraordinary AI capex cycle ultimately pays off,” he added.
Nvidia’s shares were down nearly 4% pre-market on Tuesday. Retail sentiment around the company trended in the ‘extremely bullish’ territory at the time of writing.
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