JPMorgan's Aliaga Advocates Staying in AI Trade Amid NVDA Volatility

This analysis is based on the Bloomberg Tech video featuring JPMorgan’s Stephanie Aliaga [1]. NVIDIA (NVDA) experienced a 9.25% 5-day decline ending November 25, with a 7.81% single-day drop on November 20 [0]. Despite this volatility, the Tech sector rose 0.785% on November25, outperforming NVDA’s intraday performance [0]. Key drivers of NVDA’s drop include Michael Burry’s short position (citing valuation concerns) and investor fears over Google’s AI chip competition [0]. Aliaga emphasizes staying in the AI trade, focusing on long-term growth over short-term swings [1].

• Divergent Sentiment
  : Analyst consensus (73.4% Buy, $250 target [0]) contrasts with Burry’s bearish bet, highlighting market division.
• Sector vs Company
  : Tech sector strength suggests NVDA’s drop is company-specific rather than a broader AI trend.
• Valuation Tension
  : High P/E (43.61x [0]) raises risk, but strong margins (53.01% net profit [0]) support long-term optimism.

• Elevated valuation (43.61x P/E [0]) increases sensitivity to negative news.
• Competitive pressure from Google’s AI chips [0].
• Short-term volatility (7.81% single-day drop [0]).

• Analyst consensus upside of 40.6% (target $250 [0]).
• Long-term AI growth tailwinds highlighted by Aliaga [1].

• NVDA closed at $177.82 on Nov25 with $4.33T market cap [0].
• 5-day performance: -9.25% [0].
• Analyst consensus: 73.4% Buy, $250 target [0].
• Net profit margin:53.01% [0].