Nvidia closed down 10% on Friday, falling the most since March 2020 and losing more than $200B of its market value, as investors pull back from AI bets
US stock markets suffer their worst run since October 2022 as investors pull back from AI bets — Nvidia's share price plunged …
Financial TimesGeorge Steer
Context & Ripple Effects
This sell-off marks an early stress test for the market’s AI-infrastructure trade: a retreat in AI-linked equities coincided with the weakest US market stretch since October 2022, making Nvidia a focal point for changing risk appetite rather than just company-specific sentiment.
Nvidia shareholders absorbed a roughly 10% one-day decline and more than $200B of lost market value, sharply repricing the company as investors reduced exposure to AI bets.
The pullback extended beyond Nvidia to broader US equities, with AI-related positioning contributing to a weaker market backdrop.
Other AI-exposed stocks can be pulled into the same risk-off trade, as later cooling enthusiasm coincided with declines in Nvidia and Arm.
Third-order effects
If repeated, these episodes would shift the AI-infrastructure cycle from valuation-led momentum toward tighter investor scrutiny of the economic payoff from large AI outlays.
Nvidia’s market moves may increasingly transmit sentiment across the AI supply chain and public markets, making infrastructure investment narratives more financially interconnected.
The trend: The AI infrastructure supercycle is moving into a phase where investor conviction depends more heavily on whether spending can demonstrate durable economic returns.
As a related aside, Nvidia's recent peak was the Nvidia GTC conference on March 8th. I had people live-texting that thing at me, and baffled that I wasn't watching it, as if Jensen Huang was going to Steve Jobs “one more thing” an alien superintelligence back at me. It was legi…
From their respective peaks earlier this year, Tesla (-$301b) and Nvidia (-$455b) combined have now shed more than three-quarters of a trillion dollars in market capitalization. Trillion, as in trillion, the really big number with the zeros. That's, like, half the Swiss Stock E…
BREAKING: Nvidia, $NVDA, is now officially in bear market territory, down 20% from its all time high seen just one month ago. The stock has erased a whopping $400 BILLION in market cap since March 8th. Meanwhile, Super Micro Computer, $SMCI, is now down 40% from its recent all...…
Nvidia falls 10% as Llama-3 hits the market. The algorithms are pretty good when it comes to anticipating the future and trading stock! Why buy GPUs to train LLMs when we already have a couple of world-class open-source LLMs and more coming? 🤷♀️🤷♀️ [image]
I'm retweeting this not because I believe it (or disbelieve it), but as a data point about the level of confidence within NVIDIA. It could well be justified. I don't know enough to say. But 10 year predictions like this are extremely rare in tech.
How can $NVDA be in a bear market when it's still WAY above is 200-day SMA (1st chart) and how can it be changing its trend when it hasn't passed below the 38% retracement of its last intermediate leg higher (2nd chart)? Some pullbacks are just bigger than others because the... […
For the first time in months, Nvidia is now worth LESS than $2 trillion. As we kick of Q1 2024 earnings season, many of the large cap tech stocks have lost their momentum. This market needs tech to thrive. Follow us @KobeissiLetter for real time analysis as this develops.
$NVDA ends the day down -10%, losing $213 billion in market value. Shares are now 22% away from their all-time high, technically meeting the definition of a bear market Has the AI bubble burst? [image]
Sharing $NVDA support levels after today's humbling and disconcerting 10.0% decline...the 50-day MA was penetrated, putting next support at February's gap and a Fibonacci retracement level in the $742-$752 area...if this support zone is taken out, a secondary Fibonacci level near…