Mike Larson | Editor-in-Chief
One TRILLION in AI chip sales. Thatâs what Nvidia Corp. (NVDA) CEO Jensen Huang just projected through 2027. Wall Streetâs reaction was toâŚyawn. So, why wasnât a trillion bucks enough to move the stock?
Check out the MoneyShow Chart of the Day, which shows trading in Nvidia stock over the past two days. Huangâs comments at the âSuper Bowl of AIâ conference gave the stock a boostâŚbut it quickly petered out.
NVDA: When a Trillion Bucks Doesnât Buy What it Used to
Source: Yahoo Finance
Itâs not just a short-term thing with Nvidia, either. The stock hasnât gone anywhere since last August, with rallies quickly fading (but selloffs also contained).
Whatâs going on? First, the company had already predicted a half-trillion in sales through the end of 2026. Throwing out a bigger-sounding number wasn't really a sales forecast boost. More of a timeline extension.
Second, skepticism about the AI borrow-and-spend boom has been taking some of the wind out of the tech giantâs sails for a while. Concern over competition from other chipmakers has, too.
None of that means you have to rush out and dump your Nvidia shares. But money is rotating out of âBig Techâ in search of new sectors and stocks. So, it wouldnât hurt to diversify a bit if youâre looking for more action in your portfolio - rather than pronouncements that don't move the needle.
Looking to play defense in this increasingly challenging stock market? Then check out this briefing from our January MoneyShow Virtual Expo. Buff Dormeier, chief technical analyst at Kingsview Partners, breaks down how Tactical Allocation Models (TAM) can help you mitigate downside risk and drawdowns.Â
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Looking for timely, actionable, and FREE investor education? Then join us April 8 for our Pre-Show event â at the MoneyShow Masters Symposium Hollywood Florida!
Weâve programmed a half day of workshops and panels focused on AI stocks, cryptocurrencies, and trading strategies. And you can access it all at the Diplomat Beach Resort â at no cost â by tapping this buttonâŚ
VIX: Want to Trade Volatility? Consider These Options
đ TICKERS:Â SPX, UVIX, VIXY, VIXOver the years, weâve discussed a lot of volatility-based trades. Since volatility is high now, a number of them are apropos. The simplest is to buy call options on CBOE Volatility Index (^VIX) futures or on a volatility ETF, including the ProShares VIX Short-Term Futures ETF (VIXY) or 2x Long VIX Futures ETF (UVIX), explains Lawrence McMillan, editor of Option Strategist.
Stocks finally got some relief from the oil markets on Monday, as WTI declined 4.6% to $94 per barrel and Brent dropped 2.6% to $100.50. One stock to consider trading is GE Vernova Inc. (GEV), a global leader in the electric power industry, observes John Eade, president of Argus Research.
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