Overview
- Wall Street treats Nvidia’s after‑the‑bell results as a litmus test for the AI‑driven rally, with the chipmaker now roughly 8% of the S&P 500.
- Options data from ORATS point to about a 7% move in either direction, which Reuters says would be the company’s largest one‑day post‑earnings market value change.
- Bank of America’s global fund survey finds a majority now view companies as over‑investing in AI, with more than half calling it a bubble and 45% naming it the biggest tail risk for 2026.
- High‑profile investors have pared exposure to the trade, with SoftBank selling its entire Nvidia stake and Peter Thiel’s fund exiting, while Michael Burry disclosed large puts against Nvidia and Palantir.
- Morgan Stanley estimates nearly $3 trillion of Big Tech AI spending through 2028 but flags an approximate $1.5 trillion funding gap, reinforcing questions about payback timelines.