Why Nvidia carpet pulling doesn’t fascinate US stock market regulators: Morning Brief

On By Littum

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Nvidia just made history. Again.

On Monday, Nvidia stock closed at a record high, the first since November. Investors poured in ahead of CEO Jensen Huang’s highly anticipated CES keynote — perhaps anticipating the big reveals needed to generate AI hype.

Speaking to a packed audience of over 6,000 in Las Vegas, Huang laid out a bold vision for what he called “the era of physical AI.”

“The ChatGPT moment for general robotics is right around the corner,” Huang declared, signaling that AI’s potential is only beginning to materialize in physical systems such as its Cosmos platform. He also highlighted Nvidia’s partnership with major automakers such as Toyota and Volvo, leveraging its DRIVE Hyperion platform to power next-generation autonomous vehicles.

According to Huang, “Building autonomous vehicles, like all robots, requires three computers: one for training, one for simulation, and one in the car. And Nvidia runs them all.”

NasdaqGS – Delayed quote USD

140.11 – (-0.02%)

At the end: 8 January at 4:00 PM EST

Futuristic, trillion-dollar visions of Nvidia-powered humanoid robots and self-driving cars dominated investors’ minds into the early morning, sending the stock to new record highs.

But when Wall Street opened for business at the opening bell on Tuesday, a “sell the news” fever gripped Nvidia investors, culminating in $220 billion. fall in market value – the worst in four months.

It’s a familiar story for Nvidia investors: an all-time high followed by a blanket pull.

Investors got a taste of this most recently after Nvidia’s earnings announcement on November 20th. The stock rose north of $150 for the first time, only to be met with investor selling, leading to a 13% decline.

It’s also reminiscent of the June 20, 2024, pop to $140, which was met by a 27% selloff that saw Nvidia cede the world’s largest stock title to Microsoft.

A similar story unfolded around the disappointing February 2024 monthly jobs report released on March 8, which sent stocks tumbling. Nvidia opened at a record high before posting its worst return in 10 months, leading to an eventual 20% pullback.

It’s also an echo of the August 23, 2023 earnings announcement that first pushed it to $50 (on a split-adjusted basis), only to see it frustrate bulls and trade sideways for four months.

The bottom line is: Nvidia may be the undisputed leader of this bull market, and it has often frustrated bulls. But that has yet to disrupt the general bull market in US stocks.