IWM - 'Nvidia Is Sucking The Oxygen Out Of The Room:' Wealth Manager Says Stocks With 'Good Fundamental Execution' Can Still Decline Because Of AI Stalwart | Benzinga
Tech rally has predominantly fueled the market upside in the current bull run, and a wealth manager said on Saturday that Nvidia Corp. (NASDAQ:NVDA) in particular has drawn investments out of the other sectors and even the rest of the tech stocks.
Nvidia’s Far-reaching Impact: “Nvidia is sucking the oxygen out of the room,” said Lumida Wealth co-founder Ram Ahluwalia in a post on X, formerly Twitter.
Sharing a chart of the S&P 500 sector indices, he said every sector is hurting except tech. The financial advisor also traced back the declines in other stocks to Nvidia’s strength. “Your [Lululemon Athletica Inc] stock is down because the owner decided to buy . Your stock is down because the owner decided to buy [NVIDIA].”
Much against his earlier expectations that the phenomenon would be limited to techs, every sector seems to be impacted, Ahluwalia said. He went a step further and noted that stocks across the Atlantic were also flat-lining due to the Nvidia pull. “I believe the ‘AI story,’ with [NVIDIA] as the leader, is causing the weak breadth stats,” he said.
Ahluwalia’s deduction ...