One TRILLION in AI chip sales. That’s what Nvidia Corp. (NVDA) CEO Jensen Huang just projected through 2027. Wall Street’s reaction was to…yawn. So, why wasn’t a trillion bucks enough to move the stock?
Check out the MoneyShow Chart of the Day, which shows trading in Nvidia stock over the past two days. Huang’s comments at the “Super Bowl of AI” conference gave the stock a boost…but it quickly petered out.
NVDA: When a Trillion Bucks Doesn’t Buy What it Used to
Source: Yahoo Finance
It’s not just a short-term thing with Nvidia, either. The stock hasn’t gone anywhere since last August, with rallies quickly fading (but selloffs also contained).
What’s going on? First, the company had already predicted a half-trillion in sales through the end of 2026. Throwing out a bigger-sounding number wasn't really a sales forecast boost. More of a timeline extension.
Second, skepticism about the AI borrow-and-spend boom has been taking some of the wind out of the tech giant’s sails for a while. Concern over competition from other chipmakers has, too.
None of that means you have to rush out and dump your Nvidia shares. But money is rotating out of “Big Tech” in search of new sectors and stocks. So, it wouldn’t hurt to diversify a bit if you’re looking for more action in your portfolio - rather than pronouncements that don't move the needle.
