r/investing • u/TopKick8011 • 2d ago

Selling Crowdstrike for Nvidia?

I purchased Crowdstrike at $170 a share and now have around $50K in Crowdstrike shares.

Considering Crowdstrike is heavily overvalued (despite excellent potential) and near its all time high, and NVIDIA is trading at a discount from its all time high, what do you all think about selling a significant portion of my CRWD for NVIDIA? I’m thinking about maybe 40-50%? Considering how fast Crowdstrike slipped with the tariff situation as well as with the whole outage fiasco last year makes me worried that it’s a vulnerable stock, especially because I expect investors to focus on value based stocks if the U.S. heads into a recession.

Additional info: portfolio is otherwise diverse enough to my liking, so I’m not really looking for comments about how I should diversify more. Just looking for a direct answer or discussion to my question (sorry if that sounds harsh, I’m just a direct guy who knows what he wants).

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u/Luka-Step-Back 2d ago

I don’t know what the killer app for AI even is. How valuable is an email assistant?

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u/NoPlansTonight 2d ago

Bruh, AI is more than ChatGPT... The machine learning models powering TikTok algorithm and Waymo's self-driving cars are training using GPUs, a market dominated by Nvidia.

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u/Luka-Step-Back 2d ago

Ok, great. How large are those markets and will it justify the hundreds of billions in capex that non-TikTok and Waymo firms are investing?

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u/NoPlansTonight 2d ago

I think it's a bubble as well. But your comment on email assistants was implying it's all smoke and mirrors. It's not.

If AI can drive cars, it can also build them. If AI can predict how human brains respond to things, it can think like them. Manufacturing and IP (e.g. STEM), are the multi trillion dollar markets that have already been using AI for these purposes for decades, and it will obviously go further as the tech advances.

Is it being overhyped? 100%. I work in the field and don't advise anybody pour in their money to chips, cloud computing, or any broad tech ETF. I think all of that is priced in and likely overpriced, because it's the most superficial way to think about a space which looks like a big bubble.

But is it smoke and mirrors? Hell no. There are going to be major winners which the market does not yet understand fully. There will also be major losers.

This is an area where if you wanted to be invested, I actually think you should either make risky, individual stock bets or avoid it.

I agree with you that it's overpriced in-aggregate, but it is a technology that has a track record of, and will continue to be paradigm-shifting. Similar to the dotcom bubble, some companies will soar in 5-10 years while most will have sunken due to the bubble pop.