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The Nasdaq Keeps Hitting New Highs. Don't Be Tempted to Buy Big Tech. - Barron's

1. Nasdaq gains 95% over five years; high valuations raise concern. 2. AI boom propels tech stocks, but risks of an earnings pullback loom. 3. Nvidia constitutes 12.7% of the Nasdaq; its earnings will impact index. 4. Earnings drop risks for Nvidia could weigh on semiconductor peers. 5. Investment in tech advised against until correction occurs.

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FAQ

Why Bearish?

High valuations and market saturation create pressure on Nvidia's stock. Historical trends show significant drops in response to earnings misses.

How important is it?

With Nvidia's significant market representation, volatility will directly affect its share price. Market conditions are ripe for potential corrections, impacting investor confidence.

Why Short Term?

Nvidia's upcoming earnings on August 27 will provide immediate market direction. Immediate market reactions are often driven by quarterly earnings results.

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