Investors are taking turns exiting Nvidia as the Nasdaq hits record highs

This report is from today’s CNBC Daily Open, the international markets newsletter. CNBC Daily Open keeps investors informed on everything they need to know, no matter where they are. Like what you see? You can subscribe here.

A losing streak for the Dow
Monday, Dow Jones Industrial Average He lost 0.25% to him For the eighth consecutive day of lossesthe longest streak since 2018. The Standard & Poor’s 500 It rose by 0.38% Nasdaq Composite It advanced 1.24% to close at a new high level. The markets were Asia Pacific Mixed on Tuesday. China’s CSI 300 index rose about 0.4% after lawmakers It is said It plans to increase the country’s budget deficit in 2025.

Patch: Nvidia
Nvidia Shares fell 1.7% on Monday to close at $132. This represents about 11% of the closing high of $148.88 in November Nvidia is in the patch zone. However, Nvidia is still up 166% this year, and a correction does not necessarily indicate a sustainable downtrend. Moreover, other chipmakers, e.g Broadcomstill Power forward.

Waymo paving in Tokyo
Waymo will start Testing its self-driving vehicles in Tokyo Starting in 2025, the company announced on Monday. This is the Alphabet-owned company’s first foray into the international market — and a left-handed one. Local taxi operator Nihon Kotsu and taxi app GO will be Waymo’s partners in Tokyo.

An incentive to invest or a deterrent?
Indonesia bans the sale Apple iPhone 16 in October because of him law Requiring companies to invest in components or obtain them from the state. The government is now asking Apple to do so Investment of $1 billion In manufacturing cell phone components in Indonesia. However, analysts believe that such tactics to attract investment to the country It can backfire.

(PRO) Small European companies as well
Small and medium-sized businesses in the United States have been attracting attention – and inflows – in recent weeks, thanks to Trump’s apparent focus on the domestic economy. across the atlantic ocean, European companies of this size Its shares are also likely to outperform their larger peers next month, according to strategists at Deutsche Bank.

The frustrating thing for Nvidia – and its shareholders – is that no matter what… investigation By a Chinese regulatory body, there were no other major bumps in the road: in fact, the fundamentals of the company are stable.

As Keith Lerner, co-chief investment officer at Truist, points out, Nvidia’s position in the semiconductor and AI industry remains unchanged. “You need Nvidia, and you need their chips for infrastructure,” Lerner said. “But I think what the market is also saying is that there are other beneficiaries beyond that.”

The fact that the Nasdaq Composite closed at another record high despite Nvidia’s decline is a sign of this shift to other semiconductor and AI-related stocks.

Even more telling is that Broadcom shares have hit the accelerator, surging forward on Friday and Monday on the back of a glowing wave. Fourth quarter earnings report and Increasing target prices by banks.

“Momentum has been driving this stock,” said Kim Forrest, chief investment officer at Bokeh Capital Partners. “I don’t think momentum is going to kill it quite yet, but momentum is doing what momentum does, which is it’s going for the high end.”

The main difference between playing the stock market and playing Mario Kart is that the latter is a zero-sum game – you lose if your friend wins – but that’s not always the case with the former. You can own both Nvidia and Broadcom, and benefit regardless of who leads the race.

— CNBC’s Ari Levy, Samantha Sobin, Brian Evans and Jess Pound contributed to this report.