Nvidia Triggering Dot-Com Crash 2.0? Kevin Gordon Says Stop 'Cherry-Picking' Data, Tech Isn't 'Euphoric'
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Despite growing fears that the AI stock boom led by giants like Nvidia Corp. (NASDAQ:NVDA) is mirroring the late-1990s dot-com bubble, Charles Schwab's Kevin Gordon argues that today’s market fundamentals tell a much healthier, diversified story.
Stop ‘Cherry-Picking’ Data
While it feels like a top-heavy market driven by a handful of AI titans, Gordon warned investors against “cherry-picking” narrow time horizons to prove a massive concentration risk.
Gordon, in conversation with Phil Rosnen, notes that while Nvidia is currently the top contributor to the S&P 500's return purely due to its massive market cap, sheer contribution does not equal pure performance.
“If you look at its performance, there are almost 90 names in the S&P 500 that are seeing stronger gains this year, you know, in front of Nvidia,” Gordon explained.
He emphasized that there are still meaningful, often ignored pockets of outperformance in the market—such as small-cap tech significantly beating large-cap tech over the past year—if investors are willing to look under the surface.
Sentiment Isn’t ‘Euphoric’
Addressing the looming fears of a Dot-Com Crash 2.0, Gordon highlighted stark contrasts between the macro backdrops of 2000 and today. During the dot-com bubble, almost every valuation and sentiment metric pointed to a massively overextended market driven by pure hype.
“Everything was screaming euphoric in ’99 and 2000. Today, that’s not necessarily the case,” Gordon said. He credits the rolling corrective phases of 2022 and 2023 for preventing a dangerous, overarching melt-up.
These routine market washouts have successfully wrung out “frothy sentiment,” keeping investor expectations relatively grounded.
A Healthier Earnings Profile
Ultimately, Gordon stressed that high P/E multiples alone are terrible tools for predicting market crashes. Instead, he focuses on the actual financial health of the S&P 500, arguing that today’s corporate earnings profile is substantially healthier than it was decades ago.
Instead of tech companies with zero revenue trading at sky-high multiples, today’s largest names are generating massive, tangible profits, supporting a durable underlying economy.
Analysts are expecting NVDA to report second-quarter earnings of $1.76 per share on revenue of $79.04 billion after the closing bell on Wednesday.
How Has NVDA Performed In 2026?
In comparison with the Nasdaq 100’s 14.33% year-to-date advance, shares of NVDA have fallen by 18.29% over the same period. It closed 0.77% lower on Tuesday at $220.61 per share, and it was 1.39% higher in premarket on Wednesday.
Over the last month, NVDA stock was up 9.39%, and it advanced 18.28% and 62.73% over the last six months and the year, respectively. Benzinga’s Edge Stock Rankings indicate that NVDA maintains a strong price trend in the medium, short, and long terms, with a poor value ranking.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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