Nvidia Stock Plummets Amid Supply Chain Concerns, Echoes of Dot-Com Bubble
Nvidia shares tumbled nearly 5% despite record quarterly earnings, as investor Michael Burry drew parallels to Cisco's dot-com bubble trajectory. The chipmaker's $95.2 billion in purchase obligations—a sixfold annual increase—now approaches its entire operating cash flow, creating vulnerability to demand fluctuations.
Wall Street maintains bullish sentiment with a $273.38 average price target, but supply chain risks loom large. Burry's warning highlights the precarious balance between Nvidia's explosive growth and potential overextension, with $117 billion in total commitments mirroring late-1990s tech exuberance.