Nvidia’s stock rout is just the beginning of more pullbacks that could be multiple times larger, ‘Black Swan’ author says

[Pelican Press 0]

This is the hidden content, please

• Sign In
• or
• Sign Up

Nvidia’s stock rout is just the beginning of more pullbacks that could be multiple times larger, ‘****** Swan’ author says

Getty Images; Chelsea Jia Feng/***

This is the hidden content, please

• Sign In
• or
• Sign Up

‘s 17% sell-off could be the beginning of a pullback that’s two or three times larger, Nassim Taleb says.

The “****** Swan” author said the

This is the hidden content, please

• Sign In
• or
• Sign Up

-fueled market rout exposed how fragile the market is.

Nvidia’s loss was relatively small considering the stock’s steep climb in recent years, he added.

Nvidia’s double-digit decline could be just a taste of what’s to come for investors, with another pullback multiple times as large in the cards, “

This is the hidden content, please

• Sign In
• or
• Sign Up

” author

This is the hidden content, please

• Sign In
• or
• Sign Up

said.

Taleb, an advisorr at hedge fund Universa Investments, cautioned that Nvidia’s rout, which wiped out almost $600 billion from the chip giant’s market cap, could be followed by further large declines in the stock.

“That’s absolutely in line with what you can expect. I mean, think about it. Something goes from 1 to 10, goes back to 9, people freak out,” Taleb said, speaking to Bloomberg on Tuesday.

Amid a broader sell-off fueled by

This is the hidden content, please

• Sign In
• or
• Sign Up

on Monday, Nvidia stock shed 17% and erased $589 billion from its market cap for the worst-ever single-day loss of value in history. The total market loss exceeded $1 trillion at the end of Monday’s session.

But that decline is relatively minor considering the stock’s meteoric rise in recent years, Taleb said, characterizing Monday’s sell-off as “just a small setback.”

“You’re building everything on the hope that people will use your chip, will use chips, and the investment will not come from software or someone figuring out a better idea or some other method, which is what happened. It’s a hint of what is to come,” Taleb told Bloomberg.

Nvidia’s pullback illustrated how fragile markets are, Taleb said. He pointed to how heavily investors were concentrated in a small corner of the market; Nvidia, Apple,

This is the hidden content, please

• Sign In
• or
• Sign Up

, Alphabet, and Broadcom accounted for nearly half of all

This is the hidden content, please

• Sign In
• or
• Sign Up

in 2024, according to an analysis from Goldman Sachs.

People also tend to underestimate how volatile tech stocks can be in a single trading day, Taleb said, referring to stocks in the sector as “gray swans.”

“This is the beginning,” Taleb added. “Beginning of an adjustment of people to reality, because now they realize, now, it’s no longer flawless. You have a small little chip on the glass. Now they realize, oh, it’s not infallible. Maybe I should revise.”

DeepSeek, the ******** startup whose AI model rivals US peers despite being trained with older generation chip tech, has fueled concerns over the artificial intelligence trade in the US. In particular, the sell-off revealed concerns over two key risks that investors have mostly overlooked until now —

This is the hidden content, please

• Sign In
• or
• Sign Up

by large-cap US tech firms.

Story Continues

This is the hidden content, please

• Sign In
• or
• Sign Up

, the chief investment officer of Universa Investments, the hedge fund Taleb advises, has compared the run-up in tech stocks in recent years to the dot-com bubble, adding that the market now looks to be in the “greatest bubble in human history.”

Read the original article on

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up

#Nvidias #stock #rout #beginning #pullbacks #multiple #times #larger #****** #Swan #author

This is the hidden content, please

• Sign In
• or
• Sign Up

This is the hidden content, please

• Sign In
• or
• Sign Up