Concerns about a bubble in AI stocks have led to volatility in the market, with the S&P 500 (SPX) closing lower for four consecutive trading days, marking the longest losing streak since August. However, Wolfe Research isn’t sounding the alarm just yet.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
“We continue to believe that concerns over an AI bubble bursting are overblown … at least for now,” said Wolfe Research Chief Investment Strategist Chris Senyek. Senyek added that tech and communication services companies are “well positioned to weather a temporary storm.”
Investors Await Nvidia’s High-Stakes Earnings
All eyes are on semiconductor leader Nvidia (NVDA), which will release its earnings after the closing bell today. The numbers will likely affect both the S&P 500 and the Nasdaq 100 (NDX), as NVDA is the largest component in both indexes. Furthermore, the options market suggests that the results could move NVDA by 6% in either direction.
“It feels increasingly like the weight of the world is on NVDA,” said JPMorgan’s trading desk. Analysts expect the company to report revenue of $55.09 billion and EPS of $1.26.
Stay ahead of macro events with our up-to-the-minute Economic Calendar — filter by impact, country, and more.