An Unfair Risk for the Stock Market? From Investing.com

Investing.com – In the news that Nvidia (NASDAQ:) has received the earnings report and – a company that approached the analysts of Bank of America (NYSE:) (BofA), the following trade on the trading market has become possible. If the banker latest on the signal of the US-Notenbank and the growing works council seems, a company can be involved in the Nvidia earnings of the potential companies, which the market will let go through the market. Is it possible that Risk becomes an unintended gamble?

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Nvidia: More than a Tech Giant

Nvidia has spent the last few years in the operating system of intelligent intelligence (AI). From graphics processors (GPUs), which dominate in gaming and research centers, have learned wayward technologies in the operating system of machines – Nvidia plays a central role in the digital transformation. The Erwartungen and the Unternehmen are so widespread.

“The achievements of Nvidia are a more important step for the Aktienindices”, the BofA states in its Mitteilung. If the Nvidia financial performance has a significant impact on the total business of Aktienindices with the S&P 500, that is possible. There is a very large influence on the negative effect that you see.

An unknown risk?

Thanks to the optimism, on the market of times, the BofA sees an absolute risk, which is connected with the coming Nvidia-Ergebnissen. I think it is wise to decide for yourself and not to postpone these risks. “S&P-Put-Spreads offer a better protection as NVDA-based withdrawals”, advises the BofA. A put-spread is an option strategy, which investors can offer for a strong price development, whereby the fallen prices become more profitable.

The background of this company lies in the active market structure. The S&P 500 has grossly underestimated the BofA growth of the high “Cluster Risk” risk. These problems can if attention is paid to them, when Nvidia gets involved.

Das KI-Wettrüsten en seine Auswirkungen

Another question, the BofA retort, is the “AI trusts”. I have invested in the last few years a number of hyperscalers – a cloud provider with Amazon (NASDAQ:), Google (NASDAQ:) and Microsoft (NASDAQ:) – in 52 billion dollars of investments in AI infrastructure. This huge amount of verdeutlichen, which has become a part of Nvidia in the modern Wirtschaft, has become.

Nvidia is one of the main beneficiaries of the company, the technology that plays a central role in some AI projects. If you use this Bedeutung, you can consider it as Swedish-Schweter-erweisen. If Nvidia has no more experience, the investor can in his vision in the extensive AI-Story-verlies, the market probably hit..

A wider protective cover?

Despite the potential risks, BofA was convinced that the losses from other sectors had finally been positively outperformed. When the “Magnificent 7” came out on Nvidia, a large profit margin on the S&P 500 profit became possible and another sector of the market started to make a larger profit margin. When the market came to market for all the big sales, Nvidia fell to the market.

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