Nvidia (NVDA) stock has declined by 9% in the last five trading days, impacting high-tech indices like ^DJI, ^IXIC, and ^GSPC. Commonwealth Financial Network CIO Brad McMillan discusses recent trends in the technology sector and major chip players. While Nvidia remains dominant in the artificial intelligence market, McMillan sees opportunities in other companies in the sector. He also mentions the potential in small-cap stocks (^ROUTE) and the Federal Reserve’s approach to interest rates and inflation.
McMillan notes that while Nvidia is currently experiencing a pullback, he remains optimistic about the industry’s overall growth. He discusses the importance of companies like Apple, Microsoft, and IBM in driving consumer demand for artificial intelligence technology. McMillan sees the market expanding beyond technology stocks, pointing to the growth in consumer staple companies.
In terms of inflation, McMillan believes that the focus should not be on when the Federal Reserve will cut rates, but rather on why they would do so. He emphasizes the importance of analyzing data related to employment and inflation to understand the Fed’s decision-making process. Despite uncertainties, McMillan maintains a positive outlook on the market and the potential opportunities for investors.
Overall, McMillan’s insights suggest that while Nvidia’s stock decline may be causing short-term fluctuations, the technology sector and the market as a whole continue to show promising growth prospects. Investors should consider diversifying their portfolios beyond technology stocks to capitalize on emerging opportunities in other sectors.
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https://finance.yahoo.com/video/tech-undergoing-continued-growth-story-150917095.html