There Is Really Only One Stock To Own To Play The "AI" Meme

The market was closed yesterday, but on Tuesday NVDA surpassed MSFT to become the most valuable company in the world. People are comparing it to CSCO back in 1999 when it came to internet stocks. CSCO was the big company everyone had to own back then and we were told that it was making the plumbing of the internet. But after the Nasdaq internet bubble peaked in 2000, CSCO lagged the DOW and S&P 500 for over a decade.

If you want to buy an “AI” stock today NVDA is pretty much the only stock you can buy, because the entire sector actually stock market and financial disaster.

No one will tell you that.

Oh sure, there are lots of “AI” startups.

But those startups have spent $50 billion on NVDA chips to run what they describe as “AI” businesses and have only brought in $3 billion in sales.

What you are looking at in the above chart is the ETF for the “AI” sector - ROBO.

As you can see, from the indicator on the bottom of this chart, it has been lagging the S&P 500 for more than a year.

It actually last peaked in March and has failed to make new highs this month, much less even go back up near them, when the Nasdaq and S&P 500 did.

Yes, NVDA is in this ETF, but almost every other stock in the ETF is falling, most of them down for the year.

The “AI” stock sector, outside NVDA is a disaster.

It shouldn’t be this way if “AI” is the big future you are told it is going to be - when this is the supposedly the red hot thing of the year.

Personally, I don’t buy thinking in memes, but have specific strategies and setups I use, but most people do trade in memes in today’s market, and at this point NVDA is really the only “AI” meme stock to buy.

Perhaps that is why it has kept going up this month the way it has.

But to buy it here you need a plan to sell, because you wouldn’t be buying it on a dip, not in a good strategic entry point for an investment.