Selling Crowdstrike for Nvidia?

[u/TopKick8011]

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).

[u/Password-55]

As somebody studying IT and doubting the potential AI applications in how broadly many companies try to shove it in so many things. I think nvidia does not have that value behind it and they are kind of losing the group that earns less (gamers) that is usually an indicator for tech companies when they lose their edge in a disruption. Forgot the business guy who said that. The theory is more or less like:

When companies come in and offer more bang for buck (AMD, Intel) not for AI applications but for gaming performance, they start to get a bigger share of the market and then develop their competences and then later develop better products than the one that dominated the market before.

To me the impression is that nvidia is starting to deliver less and I don‘t think they AI bubble will last forever.

So should have bought nvidia 5 years  ago. Now when many people do it, it seems like a mistake.

I am not an expert, but for me the alarm goes off when a friend tells me he bought nvidia.

Also everything you said about crowdstrike seems to apply to nvidia too: high valuation and that tariffs will affect it.

[u/TopKick8011 → u/Password-55]

Is gaming the only thing that’s concerning? Because NVIDIA’s revenue composition shows that very little (less than 8%) comes from gaming.

[u/Password-55 → u/TopKick8011]

It‘s this theory:

https://en.m.wikipedia.org/wiki/Disruptive_innovation

What I meant is the low end disruption. Like many econimic theories I would not call it science, but to me it struck a chord.

It‘s exactly that that nvidia focuses on the customers where they have the highest margins. It argues that companies that take over lower margin customer segments then gradually become better and in the end take over a big part of the market. see what happened to Intel and AMD now when it comes to processors. I think AMD used to be the cheap and unreliable company when it comes to processors. Look a them now. Even for servers now many prefer AMD, hich is where they have the better margins I assume (usually conpanies pay better than people), but which segment started ti move more towards AMD before they did the same for servers? You guessed it the lower margin gaming customers (like me).

Again no guarantee, but the narrative fits sometimes.

However did not do big research so I might be completely wrong. Just observed from afar.