This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
NVIDIA has a knack for jumping headfirst into the market's latest obsession or fad, be it the crypto mania of the past years or the current AI-focused interest. No one does this with more panache than NVIDIA, but that does not mean that it is the sole beneficiary of this approach. Just over the past few days, Palantir and CryptoGPT have emerged as major beneficiaries of the market's current penchant to indiscriminately reward anything that contains the word AI.
With Google searches for the word AI continuing to break new records day after day, the ensuing market bubble is now primed for a healthy dose of reality. But investors are in no mood for caution, as is almost always the case in irrationally exuberant periods.
$TSM fell 0.7% after the chip maker posted a 3.6% jump in Q1 revenue but said revenue in March fell 15% from a year earlier, the first (YoY) monthly decline in almost four years. https://t.co/35XOi0SCYT
— notreload (@thudderwicks) April 10, 2023
Yesterday, TSMC shocked the market when it reported the first monthly decline in revenue in around four years. If the world's biggest contract chipmaker is facing sizable headwinds, a rational market would have started discounting the aggravating demand weakness for NVIDIA's GPUs.
$NVDA. Absolute insanity that 0.5% gain are now nearly a year of peak earnings (10b in earnings, 8b in mkt cap today). Seems nothing can displace them. $AAPL with the news that mac shipments are 40% down, doesn't seem to matter.
— Mat Roiss - NVDA RocketBear
Read more on wccftech.com