PIMCO Portfolio Manager Erin Browne joins Yahoo Finance Live to discuss the U.S. stock market, volatility, the Fed hiking interest rates, and secular trends.
After initially trading up on generalized enthusiasm or tech stocks (in the wake of yesterday's Microsoft-Activision Blizzard merger announcement), shares of semiconductor giant Nvidia (NASDAQ: NVDA) took a turn for the worse Wednesday, and are now down 2.6% as of 11:30 a.m. ET. At its current valuation of 93 times trailing earnings, Nvidia is one very pricy stock. The average valuation of stocks on the S&P 500, for example, is just 26 times earnings, meaning Nvidia shares cost more than three times the average.
Two companies I believe are great investment choices are Nvidia (NASDAQ: NVDA) and Unity Software (NYSE: U). Both are helping artists and designers create the metaverse with visualization tools. The metaverse is solely online and must be powered with computer hardware.