May. 23 at 12:23 PM
$NOW NVDA selling off means one thing. Nobody else can buy the stock, its the best company out there, yes, but inflows can only happen so long, there is no appetite for a
$10 Trillion dollar company. It's just too risky.
Next week sets the stage.
$CRM is the face of software, and they report Wednesday. Everyone assumes a beat then a selloff because that is what software does lately. Benioff is the face of software. If he can convince the market AI is going to be just a commodity, then AI loses its shine. Open AI has no path to profitability as multiple players enter the market.
The chip trade is just too risky, market caps are too huge. Yes, demand it there just like the multiples were for Cisco in 2000. Took 25 years for that company to come back in favor, same with
$INTC.
Right now the chip sector screams higher multiples, per the analysts. That is precisely when you sell that space. There is going to a rotation back into software, if Benioff can sell it Wednesday.
$MSFT
