Good morning from Europe, everyone!

As we embrace yet another Friday, we take note of the challenging session Asian markets have experienced. Our attention is now directed towards Jerome Powell’s eagerly anticipated address at Jackson Hole and therefore we dance around that address to provide you with the grander context:

NVDA recently concluded yet another impressive earnings call, surpassing expectations across most metrics. However, the response in terms of price action has been notably subdued this time. Evidently, we find ourselves in a phase where investors are becoming more stringent in their demands for substantial growth before granting tech giants the privilege of significant rallies. Interestingly, even the fervor surrounding AI seems to be waning, reflecting a shift in market sentiment.

We are content with our strategic decision to exit from AI investments at this juncture. The prevailing risk/reward landscape appears to be less favorable in the current scenario

Chart 1: NCDA vs AI story count