NVIDIA's stock, which was rising steadily, has dropped for two consecutive days. When the stock price falls, conflicting opinions often arise. Some say that since the stock price has dropped by over 3% for two consecutive days, it will continue to fall further. There are opinions based on technical analysis as well. Shall we take a look at the chart? I brought the chart. In the chart, there have been strong bearish candles recently, which have formed what is called a bearish engulfing pattern where the bearish candle completely engulfs the previous bullish candle. According to those who conduct technical analysis, when this pattern appears, it is interpreted as a sign that the selling pressure overwhelms the buying pressure. Such a pattern can be considered a warning signal indicating the possible end of an uptrend. That's how they see it, but they have raised the trend line.

Analysts say that when a stock price sharply rises and then reverses, such a pattern can occur, but unless the price significantly breaks after the split, it will not experience a further significant drop. From this perspective, they are observing this pattern. Looking at the balance, an article came out saying that as of early 2026, Nvidia's stock is trading at 20 times PSR market capitalization compared to sales. This seems a bit high. Based on various data, from 1970 to 2020, stocks trading above PSR 15 times have tended to decline significantly. During this period, stocks exceeding PSR 15 times underperformed the market by 18% for 3 years but experienced over a 28% decline. If the PSR exceeds 20 times, the returns were even worse. This is the content. Therefore, the author wants to emphasize that this time is different. Don't I understand AI, cloud computing, the internet, mobile phones?

After personal computers, it may be the most important thing in technology. I'm not good either, but numbers worry me. This is how it is said. Then, comparisons are made with various related industries. Microsoft has seven times more employees than NVIDIA, and its revenue is twice as much. Apple has five times more employees and three times the revenue. Nevertheless, last week, NVIDIA's market value surpassed these two companies at one point. Including concerns like this, it might be better to turn our attention to companies like Micron, Arista Networks, Corning - a fiber optic cable company, Qualcomm, SoftBank with a significant amount of ARM, Oracle, cloud companies, and so on. However, there are also opposing views. Melis Research raised the target price from $125 to $160 today. The day when NVIDIA's stock price fell for two consecutive days was today. This year alone, the target price has been raised five times.

There has been an improvement. While mentioning companies, we still believe that NVIDIA is in a better position than some SAS companies. These leading companies in the SAS field have not yet proven that AI can add additional value to their stories. That's why we can argue that NVIDIA should absorb more profits from these companies. The argument is that NVIDIA can monopolize the AI ecosystem further and thus extract more profits from software and cloud companies. Because SAS companies need powerful computing performance to integrate AI machine learning capabilities into software, they ultimately use NVIDIA GPUs. Moreover, many SAS companies need to build large data centers to operate cloud services, which ultimately makes NVIDIA profit more.

Companies are investing a lot of resources in AI research and development, and NVIDIA's GPU software can also be utilized. NVIDIA makes money from this. Many SaaS companies provide services by collaborating with cloud providers such as AWS and Google Cloud Platform. Of course, Amazon and Google have their own systems, but ultimately, NVIDIA GPUs are indispensable. As the AI industry grows, winner-takes-all competition intensifies. The stock prices of the top companies have risen significantly, so it is better to invest in second or third place stocks. Rather than going for second place, the first-place companies are advancing. Bank of America also released a report maintaining NVIDIA's target stock price at $150. In fact, Bank of America predicted a downturn in MB stock at a fantastic timing, as they issued this report on the 19th.

Right before the stock price drops, for two days in a row, right before it drops. How did I write it? NVIDIA's rising trend could lead to profit-taking, but short-term volatility is highly likely. I conveyed this note. There's a talk about NVIDIA by SoftBank Group Chairman Son Jeong-hee. It's been a topic since the shareholders' meeting. SoftBank Group actually bought NVIDIA shares in May 2017 and became the 4th largest shareholder. In February 2019, for various reasons, they sold all of it, making a huge profit. If they had kept it, Chairman Son Jeong probably would have earned an additional $15 billion. In a way, it's a massive investment failure for Chairman Son. However, instead of NVIDIA, Chairman Son Jeong-hee caught Amorepacific. He invested in it a bit earlier.

I left as much as hundreds of billions of dollars here, just like Alibaba. Chairman Son says this: If God gave me another chance and told me to choose only one between Amgen and NVIDIA, I would choose Amgen without any hesitation, not even for a second. I have deep conviction about the future of Amgen. He made a strong statement like this. Are we really making a lot by buying other AI stocks instead of NVIDIA, the top stock? Or is it better to firmly go for the top stock NVIDIA? Currently, there are conflicting opinions on Wall Street, and I believe there are also many different opinions among you. I am curious as well. If you leave a comment, it will be very helpful. Let's wrap up Brand Beer with this today. Please subscribe to Wall Street and give it a like. Thank you.

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