NVIDIA SINKS - DRAGGING MICRON, AMD, AND OTHER AI STOCKS DOWN!

All right, fellow Micron stockholder, AMD, well, Nvidia, I own that, too, Intel, all of that. We got a lot to talk about. We had a very mixed day. Uh, the Dow was up. Some of my stocks over there had did pretty good. Up 262, Nasdaq down 43. Now, it's not a major, major red day where the Nasdaq was down like 600, 700 points, but you've got headlines like this, which is quite frankly why I titled the video this. Nvidia sinks, dragging chip stocks lower. If we take a look at where Nvidia is right now, it was down 4.9% uh in standard hours of trading, and it's up point 04. Don't go buy that island in the Bahamas in after-hour trading. But, look, it this is a sentiment scenario. I think a lot of what we're seeing here in the market is overreaction to a lot of different factors. Overreaction to capex expenditures, to Google Alphabet raising how much they're spending on their AI compute platform, blah, blah, blah. The fear around Meta, Amazon, Microsoft, who are going to announce earnings Wednesday and Thursday of this week. All that kind of stuff. Blah, blah, blah. Technical term right there, okay? Look, I am right there in the same boat with you because nothing has changed. Nothing has really changed in the entire AI stock landscape. It simply is not. But, we have these kind of weeks, we have these days where we have titles like this. Nvidia sinks, dragging stocks lower. All the stocks are, "Oh my god, we all need to jump out of the ship because it's going it's sinking." No, it's not. It simply isn't. You know, if you look at Micron, it was down 2% uh in the regular hours of trading, and it's down just about another 2%, but it is an overreaction. It is an it simply is that. Knee-jerk reaction, whatever metaphor you want to use. That is my opinion, but I do think that it is truly overreaction playing out. AMD, kind of similar, was down about 5% trading. Wasn't like it went down 25 or 30%, and that's kind of what you would be led to believe by some of the titles that are out there. And I talk a lot about this on my videos because look, here's what it comes down to. This This title gets clicks. It does. Quite honestly, it's why I named this this video that. Why not, right? Because I needed to get your attention to tell you, "Hey, there really isn't a lot here to look at from the standpoint of bad news. There simply is not." Because I will go back to all the videos I've done for you guys for a long time. Nothing has really changed. Nothing. What is changing is sentiment. What is changing is fear and uncertainty around something that quite frankly really shouldn't be a fearful event. Now, we're going to talk about this, okay? Because we have a busy week and I want to share this with you. Okay? So, uh what you're seeing here is a chart and a graphic I made earlier today uh and it kind of talks about what we got going on this week. We still got trade war risks, US tariffs, retaliations of China, blah blah blah. We got that. But Wednesday, here's where it gets interesting and here's what comes to the heart of what I want to talk about in this video. We have federal interest rate announcement. Okay, the Fed. Not going to be a great day. The Fed's going to be probably hawkish. All that kind of stuff. But I want to get to Microsoft and Meta. We have Microsoft Meta earnings on tap for after the bell close on Wednesday. And on Thursday, we got Amazon earnings. Why are they relevant? They're the three other hyperscalers. We had Google last week. What happened? Google stock went down about, I don't know, 8 or 9%. Why? Because Google said that they were raising their capital expenditures on their AI uh compute platform. They were going to go from 100 195 100 195 billion to north of 200-plus billion. That's what they said. And they said in 2027 the raise the money was going to be even quote more significant. And that scared the heck out of everybody. Overreaction. Okay? I understand something about this. Look, and I want you to You're going to drop in the comments, "Well, what about valuations, Austin? What about the fact that Google, when they came out and did this, their free cash flow for the first time in their history went negative 5.9 billion?" I'm not I'm not arguing that. That happened, okay? But everybody's overreacting to this this wire-thin line of capital expenditures being a good thing or a bad thing from the major big hyperscalers and major enterprises like GM and Ford and all this kind of stuff. Because it's an overreaction because nothing's changed. They're These companies are building out their AI platforms and investments today. AMD's CEO, or I can't remember if it was her CEO or the president, came out and she gave an interview and said that they are absolutely seeing internally AMD is seeing a return on AI investments that they made 16 months ago. They're seeing it. Okay? But everybody wants to pick and rip apart the fact that these companies are going to be increasing their capital expenditures cuz here's what's going to happen. Microsoft, Meta, Amazon are all going to say 100% that they are raising their capital expenditures for AI compute spend. It's happening. And what's going to happen? The market's going to freak out. Everybody's going to freak out. What does that mean to us as Micron, SK Hynix Samsung Nvidia Intel AMD insert any AI stock here? Most likely we're going to go down. And it's not going to be a direct correlative result to something that's fundamentally changed in Micron's or AMD's business. It hasn't. It hasn't. Okay? That's my point. My point to you is the market simply doesn't know how to really deal with this. Wall Street doesn't know how to really deal with this. So, everybody kind of is running around freaking out like, "Oh my god, this is a bad thing. The capital expenditures are going up and this this They are because you we have never seen anything like this ever in the history of business. And by the way, this is nothing like the dot-com bubble. I'm 57 years old. I was there. I lived the dot-com bubble. You had stupid companies with stupid ideas slap a dot-com name on the end of their of their business, and they were getting insane valuations. They had no business, they had no They had nothing. There was nothing to it, the vast majority of them. This is not the same. And so, anybody who trots out the This is like the dot-com bubble but they're full of crap. I lived it. I was there. I was investing in it. It was nuts. It was a crazy, crazy time. This is not this. This is real capital expenditure dollars coming from real companies. Microsoft, uh you know, Amazon, uh Google, so forth, Meta spending on the build out of their AI compute platforms because they know it's an arms race. They have to get this right because they have to deploy retail and business solutions that are going to make them billions and billions and billions of dollars later. And they are building that infrastructure out right now, and the market is freaking the hell out about capital expenditures. And by the way, it's not going to stop. The freak out about capex expenditures not going to slow down. And I've done a lot of videos talking about this. Because the fact of the matter is is it's an overreaction. So, how do you navigate it? What do you do? How do you deal with this? Look, here's how you deal with it. You don't overreact. You don't let your emotions panic. If we see Micron dip, you know, 30, 40, uh 15, 20%? Buy. Not investing advice, do what's right for you. I'm going to be buying. AMD, we see it dip, buy. Nvidia, so forth and so on. If you have a long-term investing strategy and you're in AI stocks for the long term, and by long term I mean three, four, five years, you know, well into 2033 because that's how There's going to be a north of $7 spent on AI compute build out. Yep, those are not my numbers. Those are out there. Go look. I didn't make those numbers up, okay? That's how big this is. But, Wall Street and individual retail investors simply don't really know how to process what is going on. And the overriding narratives and themes that we keep seeing bounced around and and trotted out every single week are the same old things that Wall Street is saying. And you know why they're saying it? Because they don't get it. They don't understand it. I know there's some extremely smart people. There's smarter people than me on Wall Street, 100%. But, if you want to distill it down, people are overreacting to this. Because I'm going to I'm going to challenge you a question. If Google had come out and said that they were reducing their capital expenditure expand, what would have happened? The market would have freaked out. And they would have gone after their throat saying, "You're You're not being progressive enough. You're not being strategic enough. You're not spending the dollars on, you know, forward-looking future technology that's going to make your company and us as as Google Alphabet stockholders money down the road, blah blah blah blah blah." They Do you think I'm wrong? That's what would have happened. Because that's what's That's what's playing out is that is that Wall Street is not giving any not giving these companies either side a break. If they reduce CapEx, it's a bad thing. If they increase CapEx, it's a bad thing. Well, which is the right thing? Not reduction. Not reduction. I've said that I've said that in plenty of videos. If these companies come out and they start talking about reducing CapEx expenditures, that's a problem. That's a problem. Because then you're going to see the AI stock implode. The the sector implode. Because Wall Street will take that and run with it and say that it is Armageddon. They will. So, where does it leave us? It leaves us in a place where you need to watch Wednesday and Thursday for for Microsoft and Meta and respectively uh Amazon earnings on Wednesday and Thursday. We got to watch them. And yes, we got to keep an eye on the Federal Reserve Federal Reserve rate decision. And yes, on Thursday we get PCE core PCE inflation. And yes, on Thursday we get Bank of Japan. And I this not even a video about that, but all of that's there, too. Because if the Bank of Japan raises their rate, we could see a carry trade unwind. I mean, it could be bad, okay? And everybody is spooked. So, I've been everything I talked about plus what I just mentioned, everybody is freaking out just just a smidge, technical term, smidge. They should give me a few minutes. Appreciate you. Let me know what you think. Drop in the comments below.