After Nvidia (NVDA) traded at a record $5 trillion market capitalization, momentum abruptly shifted lower. The stock lost 9.04% last week to close at $188.15 ($4.57T market cap). Suppliers cannot keep up with demand.
Nvidia CEO Huang wanted Taiwan Semiconductor (TSM) to increase chip supplies. Magnificent seven firms are pouring money into powering a Chatbot, which loses money for every query.
Momentum traders betting on the AI segment are not convinced that Oracle (ORCL) is the firm to lead its rise. ORCL stock risks falling below its September breakout from $225 to $345.72 (peak). Insider CEO Clayton Magouyrk sold 40,000 shares at $276.64, earning $11.07 million. ORCL stock closed at $239.26.
Along with NVDA stock, Advanced Micro Devices (AMD) posted results and promptly fell. IT lost 8.8% last week. AMD might offer alternative AI servers with its MI Instinct Accelerators. But AMD stock trades at a P/E ratio of 115.4.
Tesla (TSLA) lost 7.1% last week. Shareholders voted in favor of paying CEO Elon Musk $1 trillion over 10 years. If he meets 12 operational milestones, shareholders face significant dilution.
Lockheed Martin (LMT) continued a sharp downturn, losing 6.8% last week. The firm continues to innovate its products. It is investing $50 million in Saildrone, a firm that develops unmanned surface vehicles.
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