How to Trade Nvidia and Other Headline-Making Stocks

Nvidia Corporation (NVDA) was at the forefront of a surge in the NASDAQ Composite index, thanks to an earnings report that blasted past analyst expectations and revealed Nvidia to be one of the primary beneficiaries of increasing demand for AI technology.

It’s important to note, however, that this particular rising tide isn’t lifting all boats. The S&P is continuing to hover around 4150 like it has been for the last several weeks, and the jury’s still out on which way things are going to break.

Still, it’s easy to get caught up in it whenever you see a stock bounce into the headlines, and one of the most frequent questions I get from people is what to do whenever a big news story breaks on a particular stock.

The thing is, it can be really dangerous to let yourself get pushed around by the popular sentiment of the moment, especially if you don’t understand what’s behind that story or whether you’re looking at a momentary phenomenon or a real trend. Nvidia is a great example of this.

Sure, the stock is surging now, but the real question is, can they maintain it? Are we really going to see Nvidia become a trillion-dollar company any time soon? Those are the questions that should be guiding investors moving forward, not the current spectacle we’re seeing.

This week on my live show, I take a look at a handful of the stocks that keep showing up in the headlines – companies like Tesla Inc (TSLA), where it seems like there’s a new story every day – to cut through the noise and tell you which ones are worthwhile.

Check out the video:



— Shah Gilani

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Source: Total Wealth