The price action in NVDA is knee-jerk

Callum_Thomas
01-28

Here's 4 charts that spell-out where we are + what's at stake right now with a potential Bursting of the AI Bubble

Emotion Cycle Stage = Euphoria

Valuation Cycle Stage = Expensive

Hype Cycle Stage = Inflated Expectations

Soros Bubble Process = Moment of Truth?

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i.e. re the Chinese breakthrough AI model DeepSeek, which was achieved with much lower cost (denting Capex/Chips bullishness), and likely placing pressure on already tenuous margin expectations for AI commercialization, which has triggered panic selling of $NVIDIA(NVDA)$

Now, the price action in NVDA is knee-jerk, and it likely will rebound on Turn around Tuesday -- but as noted we are at a delicate stage of the cycle and the extreme confidence in the AI Hype bull market could suffer a non-recoverable blow here.

4 charts to back this assertion: $.SPX(.SPX)$ $Cboe Volatility Index(VIX)$

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