Nvidia's future may be in jeopardy as geopolitical tensions rise.
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00:00NVIDIA got to be a very large component of the stock market.
00:04The so-called Magnificent 7, which includes NVIDIA, got to be 30% of the value of the S&P 500.
00:12That's obviously an extreme, but that percentage is coming down.
00:16All in all, I would say, I know it doesn't feel like it, but compared to past sell-offs,
00:23this one hasn't been that bad, given all the concerns that have been out there.
00:30We're still talking about a market that's down by less than 20%, and that's called a correction.
00:38And the corrections usually don't last that long, and they usually lead to turnarounds.
00:44They create buying opportunities.
00:47There's still a potential for a bear market, which would be a decline of 20% or more, clearly.
00:53People are worrying about that.
00:55But I'm kind of in the correction camp, viewing this situation as an opportunity to buy.
01:02And I think at some point here, NVIDIA may very well be an opportune stock.
01:10Because a lot of what's going on with NVIDIA has to do with tariffs.
01:14And to the extent that we move in the right direction there, that could take the pressure off the stock.
01:20But yeah, I think it's better if the so-called S&P 493, the ones that are not the Magnificent 7, do better.
01:29And all in all, they've held up much better than the Magnificent 7.
01:33NVIDIA clearly is a very impressive company, manufacturing semiconductor chips that have turned out to be very important for artificial intelligence.
01:43They can also be used, combined into supercomputers.
01:47I don't see that their leadership is going to change there.
01:52But the question is, what happens if they can't produce these chips in Taiwan, for example, because of a permanent blockade by China?
02:02So NVIDIA is still very vulnerable to geopolitical consequences of the trade war between China and the United States.
02:11Yeah.
02:13So NVIDIA is still very vulnerable to China.