Nvidia’s stock has fallen 4.5 percent in December, reflecting a period of underperformance.
Keith Lerner, co-chief investment officer at Truist, noted that while Nvidia remains vital for AI infrastructure, the market may be rotating to other opportunities.
“You need Nvidia, and you need their chips for infrastructure,” Lerner said.
“But I think what the market’s also saying is that there are other beneficiaries beyond that. There’s a rotation within the Magnificent Seven, which we’ve seen a couple times this year already.”
Lerner’s remarks reflect a broader trend, as Wall Street appears to be taking profits from Nvidia’s rally this year. The company’s graphics processing units, which power large language models, have seen soaring demand since the launch of ChatGPT in late 2022.
