“Stock market bubbles don’t grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception.”
~ George Soros
Written by Bryan Lutz, Editor at Dollarcollapse.com:
In last Sunday’s 3 morning thoughts, I wrote to you about Nvidia’s overwhelming retail investor stock purchases.
Because the stock looked a lot like Tesla two years ago, before its downward trend.
Two days later Nvidia started to drop in the same way.
Reuters reports:
Nvidia suffers record $279 billion loss in market value as Wall St drops
“Shares of AI heavyweight Nvidia (NVDA.O), tumbled 9.5% on Tuesday in the deepest ever single-day decline in market value for a U.S. company, as investors softened their optimism about artificial intelligence in a broad market selloff following tepid economic data.Nvidia lost $279 billion in market capitalization, a major indication that investors are becoming more cautious about emerging AI technology that has fueled much of this year’s stock market gains.The PHLX chip index (.SOX) plummeted 7.75%, its biggest one-day drop since 2020.The latest jitters about AI come after Nvidia last Wednesday gave a quarterly forecast that failed to meet the lofty expectations of investors who have driven a dizzying rally in its stock.“Such a massive amount of money has gone to tech and semiconductors in the last 12 months that the trade is completely skewed,” said Todd Sohn, an ETF strategist at Strategas Securities.Intel (INTC.O), dropped nearly 9% after Reuters reported CEO Pat Gelsinger and key executives are expected to present a plan to the company’s board of directors to slice off unnecessary businesses and revamp capital spending at the struggling chipmaker.”
Here’s a video breakdown from Dollarcollapse.com’s Gold Prodigy…
Dave Skarica:
Is the Semiconductor Bubble Bursting?
As the overvalued AI Bubble bursts, much of the US economy may by soon to follow…
Many of the Magnificent Seven’s big tech companies like Google, Amazon, and Facebook have been downsizing…
And now, its leading stock, Nvidia, is coming down from is $3.2 Trillion market cap, losing $279 Billion in a single day.
These companies, the Magnificent Seven make up over 1/3 of the S&P 500…
If they go down, it is likely the rest of the market is going down too.
Which is why just last week we held an exclusive, 90-minute Gold Briefing outlining how to protect your wealth, and even profit in uncertain times.
You’ll also receive a small introduction to Dollarcollapse.com’s new premium service.
