Stock Rally Gets Face New Risk in Rise of Chipmakers Like Nvidia (NVDA)

The surge in artificial intelligence has led to a significant increase in the shares of chipmakers like Nvidia Corp., making them vital to the broader S&P 500 Index rally. However, these stocks are no longer inexpensive, introducing a new level of risk to further gains in the broad equities benchmark.

Max Wasserman, a senior portfolio manager at Miramar Capital, expressed concerns over the high multiples of large-cap chip stocks. He warned that their current expensive state could make the broader US stock market more vulnerable to a selloff.

Key takeaways

The artificial intelligence trend is causing the shares of chipmakers like Nvidia Corp. to soar.
This rise in chipmaker stocks is becoming increasingly important to the broader S&P 500 Index rally.
However, these stocks are no longer cheap, adding a new level of risk to further gains in the broad equities benchmark.
Max Wasserman, senior portfolio manager at Miramar Capital, warns that the high multiples of large-cap chip stocks could make the broader US stock market more susceptible to a selloff.

Stock Rally Gets Face New Risk in Rise of Chipmakers Like Nvidia (NVDA)

Key takeaways

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