Markets (^DJI, ^IXIC, ^GSPC) enter a triple witching day on Friday, but after Nvidia (NVDA) shares plummet, is the outlook as ominous as it seems?
Julian Emanuel, senior managing director of equity, derivatives and quantitative strategies at Evercore ISI, commented on how this all relates to the overall market’s generally strong performance in trading this week.
“When we talk to our fundamental analysts about this stock, they believe it has the potential to reach 10% to 15% of the market share between now and 2030,” Emanuel said. “This is clearly based on the promise of AI, but it’s not surprising to see these short-term pitfalls in a stock that has grown this much.”
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This post Luke Carberry Morgan.
Video Transcript
Julian, your expertise is broad, but you also have expertise in derivatives.
So finally, I want to ask you about witchcraft.
We talked about that earlier, but is the slight movement in NVIDIA stock price, especially over the last few days, simply technical options-related movement?
Do you think this is the start of a bigger correction for NVIDIA stock?
What do you think is going on there?
Well, these stocks have had major reversal days every time over the past year, and yesterday was one of them.
And I think what’s interesting to us is the larger message.
I think it’s probably down about 11% from yesterday’s intraday high.
The overall market was barely moving before I started speaking, and you said here that the equal-weighted index was outperforming the S&P 500 index.
This is a real positive, given the fact that the acknowledged market leader has stumbled here.
Well, look again, talk to our fundamental analysts about that name.
He believes that between now and 2030, the market’s waiting rate could reach 10-15%.
This is clearly based on the promise of AI, but it’s only natural that a company that has grown this far would have short-term flaws like this.
And the idea that the market is actually taking it in stride is very positive.
