As we start the week, it seems like a reality check is beginning to take hold. The focus isn't just on market leadership but also on the composition of that leadership. Companies like Amazon, Meta, Microsoft, and, notably, Nvidia have been performing strongly. However, Alphabet, Apple, and especially Tesla seem to be a bit of a knee-capper.

Indeed, it serves as a reminder of the risks that emerge when valuations reach extreme levels, and the trend of following the leader takes a step back. Therefore, it's unsurprising to see return dispersion among the esteemed "Magnificent 7" reaching unprecedented levels, or at least the highest observed in the past decade, which could unsettle exclusive funds tied to these top performers.

At one end of the stick, NVDA has returned an impressive 87% year-to-date, fueled by its robust Q4 earnings report and sustained investor optimism surrounding AI. Meanwhile, at the other end of the nasty stick, Tesla appears to be running on empty, facing challenges and uncertainties that have affected its performance.

Using this as a profit-taking point is tempting, especially when these heavyweight correlations snap. If Nvidia is picking up Tesla's slack, the question arises: what happens if the frenzy surrounding AI takes a break?

Share: Feed news

SPI Asset Management provides forex, commodities, and global indices analysis, in a timely and accurate fashion on major economic trends, technical analysis, and worldwide events that impact different asset classes and investors.

Our publications are for general information purposes only. It is not investment advice or a solicitation to buy or sell securities.

Opinions are the authors — not necessarily SPI Asset Management its officers or directors. Leveraged trading is high risk and not suitable for all. Losses can exceed investments.

Recommended content


Recommended content

Editors’ Picks

AUD/USD: Warming up or the RBA

AUD/USD: Warming up or the RBA

AUD/USD added to the move higher and rose to new two-month peaks near 0.6370 on the back of the soft tone in the US Dollar and rising expectation ahead of the RBA’s interest rate decision.

AUD/USD News
EUR/USD: Next target comes at 1.0530

EUR/USD: Next target comes at 1.0530

EUR/USD traded in an inconclusive fashion amid the equally vacillating development in the Greenback, returning to the sub-1.0500 region following reduced trading conditions in response to the US Presidents’ Day holiday.

EUR/USD News
Gold resumes the upside around $2,900

Gold resumes the upside around $2,900

Gold prices leave behind Friday's marked pullback and regain some composure, managing to retest the $2,900 region per ounce troy amid the generalised absence of volatility on US Presidents' Day holiday.

Gold News
Ethereum Price Forecast: ETH outperforms top cryptocurrencies, sees $1.1 billion in stablecoin inflows

Ethereum Price Forecast: ETH outperforms top cryptocurrencies, sees $1.1 billion in stablecoin inflows

Ethereum (ETH) is up 1% on Monday, stretching its weekly gains to nearly 3%, while other top blockchains experience losses. The top altcoin's recent outperformance can be attributed to rising stablecoin inflows and investment from institutional investors through ETH exchange-traded funds (ETFs).

Read more
Bitcoin Price Forecast: BTC stalemate soon coming to an end

Bitcoin Price Forecast: BTC stalemate soon coming to an end

Bitcoin price has been consolidating between $94,000 and $100,000 for almost two weeks. Amid this consolidation, investor sentiment remains indecisive, with US spot ETFs recording a $580.2 million net outflow last week, signaling institutional demand weakness.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025