Market expert cautions investors over semi, AI trade

Investment banking expert Gary Kaltbaum raises concerns about NVIDIA's high valuation and spending and highlights rising credit default swaps and the pressure on the semi-AI trade on 'Varney & Co.'

Gary Kaltbaum expresses skepticism regarding NVIDIA's current valuation, questioning its substantial spending without proportionate results. He points to skyrocketing credit default swaps and the 'circular financing' trend where companies fund others to buy their products. Kaltbaum advises investors to be very careful, noting the semi-AI trade is under serious pressure.