📈 Is Nvidia overvalued?

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Good Morning & Happy Wednesday.

Global stocks continue their steady decline, with tech and chipmakers leading the drop. Nvidia sets a record for the largest single-day market cap loss, while gold prices slip ahead of key jobs data.

Plus, Trump Media hits a new low as its lockup period nears expiration.

Grab your flat white and let's get into it! ☕️👇️

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Markets

📉 Global stocks tumble as flight from risk persists
The global selloff of risk assets continued into Wednesday morning, with US stocks hit hard amid economic worries and a tech retreat. Europe’s Stoxx 600 fell 1.1%, led by tech losses like ASML Holding.

S&P 500 futures dipped 0.4%, following the index's worst drop since August 5. Asian chipmakers also slid, tracking Nvidia’s sharp downturn, dragging regional markets down over 2%. Traders are on edge, waiting for key data to gauge the Fed’s next moves and recession risks.

🤖 Nvidia Market Cap Drop Sets Record as Tech Stocks Fall
Nvidia took a major hit Tuesday, with its stock plummeting 9.53%, wiping out $270 billion in market cap — the largest single-day loss for any U.S. company. Adding to its woes, Nvidia was hit with a DOJ subpoena over potential antitrust issues, pushing shares even lower in after-hours trading.

🤔 Is Nvidia Overvalued? 
Nvidia's latest earnings drew massive attention as the company solidified its place as the second most valuable in the world, thanks to the AI boom. Since ChatGPT's release in late 2022, demand for AI and Nvidia's GPUs surged, with companies like Microsoft now spending nearly 40% of capital expenditures on Nvidia tech. The company currently dominates the AI computing market with 80-95% share. But, is Nvidia overvalued?

🥇 Gold Loses Sparkle as Price Drifts Away from Record
Gold prices have pulled back about 1.5% from their August high of over $2,530 per ounce, hovering around $2,490 as traders await key jobs data. Investors are watching closely to see if the report supports a potential rebound.

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BUSINESS

Trump Media Stock Hits Record Low

Trump Media’s stock, primarily owned by former President Donald Trump, hit a new low on Tuesday, dropping to $17.89 per share. This marks a 77% plunge from its March 26 high of $79.38, shortly after the company’s merger with a special purpose acquisition company. The stock’s previous low was $19.38 on August 28.

The price movement of Trump Media doesn’t fully align with market trends, as it often behaves more like a meme stock, reacting to Trump’s political fortunes. For instance, the stock surged after a failed assassination attempt on Trump in July, which coincided with a boost in his campaign support.

This recent dip comes as Trump, who owns 59% of the company’s shares, nears a key date. A lockup agreement preventing Trump and other top shareholders from selling expires on September 25, though the date could be moved up to September 20 if specific stock price conditions are met. As of Tuesday, Trump’s stake was valued at over $2 billion.

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