AscendEquity @AscendEquity: "📉 𝗜𝘀 𝘁𝗵𝗲 𝗔𝗜 𝗕𝘂𝗯𝗯𝗹𝗲..."

Portugal

📉 𝗜𝘀 𝘁𝗵𝗲 𝗔𝗜 𝗕𝘂𝗯𝗯𝗹𝗲 𝗦𝘁𝗮𝗿𝘁𝗶𝗻𝗴 𝘁𝗼 𝗕𝘂𝗿𝘀𝘁? The hype around artificial intelligence stocks has reached new heights, but some signs suggest we might be nearing a peak - It could be just a correction or something bigger. Here are a few indicators that the AI could be starting to burst: 📊 𝗢𝘃𝗲𝗿𝘃𝗮𝗹𝘂𝗲𝗱 𝗥𝗦𝗜 𝗟𝗲𝘃𝗲𝗹𝘀 𝗶𝗻 $NVDA (NVIDIA Corporation) : On a monthly analysis, the Relative Strength Index (RSI) for Nvidia (NVDA) is currently at a staggering 86.5%. Typically, an RSI above 70% indicates that a stock is overvalued. The last time NVDA reached such high RSI levels was in November 2021, which was followed by a sharp downtrend. 💥 𝗛𝗶𝗴𝗵 𝗟𝗲𝘃𝗲𝗹𝘀 𝗼𝗳 𝗟𝗲𝘃𝗲𝗿𝗮𝗴𝗲: The GraniteShares 2x Long NVDA Daily ETF, designed to deliver double the daily move of NVDA shares, saw a record $743 million inflow last week. This massive inflow suggests that investors are heavily leveraging their positions to amplify gains. Such high levels of leverage can lead to increased volatility and risk, making the market more susceptible to sudden downturns if sentiment shifts. 💸 𝗣𝗿𝗶𝗰𝗲 𝗛𝘆𝗽𝗲 𝗮𝗻𝗱 𝗘𝗮𝗿𝗻𝗶𝗻𝗴𝘀 𝗗𝗲𝘃𝗶𝗮𝘁𝗶𝗼𝗻: Over the past 12 months, several AI-related stocks have seen extraordinary price increases. For example, $SMCI (Super Micro Computer, Inc) is up 281%, NVDA has climbed 190%, ARM has risen 137%, and AVAV has gained 111%. These soaring valuations often reflect overly optimistic expectations about future earnings growth. When stock prices deviate significantly from actual earnings, it can indicate a bubble, as investor enthusiasm outpaces the company's real financial performance. While AI could be a transformative technology, these indicators suggest that the current stock prices may not be sustainable. $NSDQ100 $GER40 $SPX500

5 Mentioned

NVDA

NVIDIA Corporation

SMCI

Super Micro Computer, Inc

NSDQ100

GER40

SPX500