Nasdaq Set to Snap Monthly Win Streak Amid NVDA-Driven Tech Volatility

The Nasdaq Composite is set to snap its monthly winning streak with a 1.69% drop (Oct28-Nov28) [0], driven primarily by tech sector volatility centered on Nvidia (NVDA). NVDA, a major Nasdaq component, fell 14.99% in November (Nov3-Nov28) [0], with daily volatility of 2.63% [0]. This decline aligns with intensified AI bubble concerns post-NVDA’s November 19 earnings call, where CEO Jensen Huang addressed bubble claims directly [2][3]. Despite strong fundamentals, NVDA’s stock dropped post-earnings, indicating sentiment-driven selling [2][5]. Extreme volatility in NVDA (a $1 trillion market value swing in just 54 hours) further amplified tech sector instability [5]. While the latest daily tech sector performance shows a 0.56% gain [0], this does not reflect the monthly trend, which is likely negative due to NVDA’s drag.

1. Sentiment vs. Fundamentals
   : NVDA’s extreme price swings are driven by sentiment (options trading) rather than fundamentals [5], highlighting a disconnect between market perception and company performance.
2. AI Bubble Divide
   : The AI bubble narrative is a key divide—bulls emphasize NVDA’s long-term growth runway [2], while bears (e.g., Michael Burry) warn of overbuilding [6].
3. Broader Tech Impact
   : The Nasdaq’s monthly streak snap indicates that AI-related sentiment shifts have spillover effects on the broader tech sector and major indices.

• Extreme Volatility
  : NVDA’s $1 trillion swing in 54 hours poses significant risks for short-term traders [5].
• AI Bubble Concerns
  : Continued bubble fears may lead to further sell-offs in NVDA and related AI/semiconductor stocks [2][6].
• Spillover Effects
  : NVDA’s decline could drag other semiconductor stocks (e.g., AMD, Intel) down [5].

• Long-Term Buying
  : For long-term investors, NVDA’s strong fundamentals may present buying opportunities amid sentiment-driven dips [2][5].

• Nasdaq Composite
  : -1.69% (Oct28-Nov28) [0].
• NVDA
  : -14.99% (Nov3-Nov28), daily volatility of 2.63%, average daily volume of 217.61M shares [0].
• Extreme Volatility
  : NVDA’s $1 trillion market value swing in 54 hours [5].
• Affected Instruments
  : NVDA, Nasdaq Composite, AI/semiconductor stocks [0][5].