Why Nvidia rug pull doesn't faze US stock market bulls: Morning Brief

Published On Jan 8, 2025, 5:58 AM

Nvidia's recent strong performance has led to record highs, particularly ahead of a major presentation at CES by CEO Jensen Huang. He highlighted Nvidia's ambitions in autonomous vehicles and physical AI, signaling considerable growth potential. However, following this hype, Nvidia's stock saw a significant drop of approximately 6%, showcasing a typical 'buy the rumor, sell the news' pattern that has frustrated investors in the past. Despite this setback, overall US market bulls remain unfazed, indicating confidence in broader market trends. Analysts suggest vigilance in monitoring Nvidia’s growth rates before making major investment decisions.

Stock Forecasts

NVDA

Neutral

Nvidia remains a central player in AI and autonomous vehicle technology, with significant partnerships and innovations on the horizon. However, the stock's recent downturn suggests potential volatility in the near term as investors react to market sentiments following major announcements. A growth deceleration might prompt reactions from investors, but the long-term fundamentals remain strong, sustaining investor interest.

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