Nvidia Earnings a Major Test for AI Stock Rally
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Nvidia earnings on Wednesday will be a major test for the AI-led market rally. Nvidia's results and guidance could significantly impact NVDA stock as well as other AI-related stocks.
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There's been a lot of frothiness and speculation in AI stocks recently. Super Micro stock surged 246% in less than a month before plunging 20% on Friday.
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With the Nasdaq extended and investor sentiment bullish, the potential for a sell-off, especially in hot AI plays, is high. Investors may want to consider trimming or taking profits.
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The broader market rally held up relatively well last week despite hot inflation data. Several sectors like metals, miners, infrastructure and energy showed strength.
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It's a time to be cautious about new buys, play defense, and have watch lists and exit strategies ready in case of a market pullback. Nvidia earnings could be a catalyst.