Why a Near-Term Nvidia Pullback Could Open a Lifetime Opportunity

Is a pullback in the cards for this AI leader? Here’s why we’re watching for one – and what price we’re buying... [Derby City Daily logo] [Derby City Daily logo] Why a Near-Term Nvidia Pullback Could Open a Lifetime Opportunity By Andy Swan We’ve never seen a trend catch fire with consumers like artificial intelligence (AI) has in the last few months. And that’s opened up a generational wealth opportunity. According to our proprietary LikeFolio data, talk about AI and its potential has soared a staggering 486% year-over-year. And this drumbeat of buzz has been racing along for months. [LikeFolio chart displays AI mentions +486% YoY]( As fast as AI has been cruising, there’s one company that’s in high gear in the express lane — and leading the pack. I’m talking, of course, about everything-can-be-done-with-chips innovator Nvidia (NVDA). Nvidia's stock price has doubled since we first spotlighted the opportunity [here in Derby City Daily](. I hope you took full advantage. Since the start of the year, NVDA shares have skyrocketed an incredible 209%. A little context is needed here. If you figure that the stock market returns an average of 10% a year, we’re talking about more than 20 years of gains, in seven months, from a single stock. Those incredible gains were ignited by the high expectations for Nvidia’s AI prowess. And it's no wonder: Nvidia boosted quarterly revenue guidance by [a virtually unheard-of 50%]( as part of its just-delivered earnings report, with a glowing statement from CEO Jensen Huang: “We are significantly increasing our supply to meet surging demand for them.” One analyst dubbed it “guidance for the ages.” But more recent signals are hinting that this burst of AI exuberance could be losing steam. It started when, after a period of rapid popularity gain, AI giant ChatGPT saw its first-ever user decline between May and June, according to data from internet analytics firm Similarweb (SMWB). [tweet from Similarweb dated Jul 4, 2023]( And, for Nvidia, LikeFolio data now reveals a 15% quarter-over-quarter drop in Purchase Intent mentions, our consumer-facing demand metric. [LikeFolio chart displays Nvidia Purchase Intent]( Make no mistake: The fascination with AI is still strong. And we’re long-term bulls on both the broader AI industry and NVDA. But this recent downturn in demand may be telling us that Nvidia’s shares could be in for a near-term stumble. In fact, we believe Nvidia’s shares could drop back as much as 15% in the short term. That might not sound like “good” news if you’re an NVDA investor. But trust me, it is when you’re taking a long view. [And I’ll show you why…]( [Click here to continue reading]( [Andy Swan's signature] [Andy Swan's signature] Andy Swan Co-Founder, Derby City Insights AI-Powered Profit Opportunities from Derby City Insights ✓ No. 1 AI-Powered Stock of the Decade? It’s a bold claim — but this tiny $2 stock has everything we look for in an opportunity ready for liftoff… And it’s climbing higher as we speak. [Don’t get caught on the sidelines on this one.]( ✓ New to the Database: PATH Is a Must-Watch AI Stock: We scour every corner of the market to understand what companies are leveraging AI — and more importantly, which are doing well with consumers on Main Street. [This one just made the cut.]( ✓ TTD Just Upped the Ante — with AI: The Trade Desk just announced a major upgrade to its AI-driven digital media platform… as if we needed more reason to be excited about this stock’s growth prospects. [Now this.]( © 2023 TradeSmith, LLC t/a Derby City Insights. All Rights Reserved. 1125 N. Charles Street, Baltimore, MD 21201 To unsubscribe or change your email preferences, please [click here](. [Terms of Use]( | [Privacy Policy](