Let’s look at what’s going on with the #1 stock everyone’s paying attention to today – Nvidia.
Chart of the Day
This is how NVDA has moved for the past five days.
Even accounting for yesterday’s nearly 7% recovery – the stock is still down 10% from its intraday peak last Thursday.
That’s about $350 billion in market value wiped out in just a few days.
Now, I’m not saying NVDA will crash. With the amount of attention the stock is getting, we may see buyers step in to buy the dip.
But I also wouldn’t be surprised if the stock starts losing some of its dominance – and you shouldn’t be either.
Plus, as I explain in the Insight of the Day, it might actually be a good thing.
Insight of the Day
Sector rotations are what keep a bull market going.
What most traders don’t understand is that in a long bull market, it’s unlikely for the same sector to maintain leadership the entire time.
Sectors rotate leadership, and this rotation – just like healthy pullbacks – is necessary to keep a bull market going.
The mistake most traders make is confusing a rotation for a rout.
Which causes them to miss out on the opportunities that always come with a rotation.
Sure, Nvidia may be falling – but other sectors are rising.
In fact, even within the broader AI sector, we may be seeing a rotation.
Even if Nvidia plunges, it doesn’t mean it’ll take the entire AI sector along with it.
Instead, I believe it will cause a new class of AI stocks to rise…
And I explain what these specific class of stocks are in this video here.
Ross Givens
Editor, Stock Surge Daily
