Mahoney Asset Management Scales Back NVIDIA Holdings Amid Fed Uncertainty and Valuation Concerns

On November 26, 2025, Mahoney Asset Management CEO Ken Mahoney announced scaling back NVIDIA (NVDA) holdings on Fox Business’ ‘The Claman Countdown’, citing the recent market rally as a ‘perfect storm’ driven by Federal Reserve policy uncertainty [1]. NVDA’s stock showed significant volatility in the preceding week: Nov20 ($180.64, -7.81%), Nov21 ($178.88, -1.3%), Nov24 ($182.55, +1.7%), Nov25 ($177.82, +1.66%), Nov26 ($180.26, -0.75%) [0]. The tech sector underperformed broader markets on Nov26 (0.149% gain vs energy’s +1.766%) [0], aligning with broader institutional selling trends [2].

Cross-domain connections:

1. Fed-Tech Link
   : NVDA’s sensitivity to interest rate changes makes Fed uncertainty a critical driver of its volatility [1].
2. Valuation Gap
   : NVDA’s P/E ratio (44.62x) exceeds the S&P500 average (~20x), signaling potential overvaluation [0].
3. Competitive Threat
   : Google’s AI chips could capture up to 10% of NVDA’s annual revenue [3].
4. Institutional Shift
   : Mahoney’s move reflects a broader trend of billionaires reducing NVDA holdings [2].

• Valuation Risk
  : High P/E ratio indicates overvaluation concerns [0].
• Macroeconomic Risk
  : Fed policy uncertainty may increase tech sector volatility [1].
• Competitive Risk
  : Google’s AI initiatives pose long-term market share threats [3].
• Sentiment Risk
  : Tech sector underperformance signals weakening investor confidence [0].

• Recent pullbacks may offer buying chances for long-term investors confident in NVDA’s AI dominance [0], though caution is advised due to prevailing risks.

NVDA’s volatility stems from Fed uncertainty, valuation gaps, competitive threats, and institutional selling. Key metrics: market cap ($4.39T), TTM EPS ($4.04), P/E ratio (44.62x) [0]. Decision-makers should monitor Fed announcements, NVDA’s Q4 earnings (Jan2026), competitive developments, and institutional flows [0].