Nvidia(US:NVDA) Benzinga·2025-11-24 10:05Core Viewpoint - Albert Edwards, Global Strategist at Société Générale, warns that the U.S. equity market is in a dangerous bubble primarily driven by tech and AI, which could lead to severe consequences [1][2]. Market Conditions - Edwards compares the current market situation to the dot-com bubble of the late 1990s, citing soaring valuations of tech companies, with some trading at over 30 times forward earnings as a clear indication of a bubble [2]. - The S&P 500 fell 1.65% and NASDAQ declined 2.26% over the past 5 trading days, driven by a tech sell-off despite strong results from Nvidia Corp., which saw its stock drop 3.90% during the same period [6]. Economic Vulnerability - The current economy's heavy dependence on the AI theme for both business investments and consumer spending, particularly driven by the wealthiest Americans, makes it more vulnerable than during previous bubbles [3]. - Edwards emphasizes that the U.S. has not experienced a recession since 2008, and this prolonged growth period raises concerns about the sustainability of the current market [4]. Industry Reactions - Bill Gates acknowledges the existence of an AI bubble but suggests it is not comparable to historical bubbles, while Wedbush analyst Dan Ives asserts that the current situation should not be labeled as an AI bubble, focusing instead on Nvidia's strong performance [7].