# Lessons from Nvidia’s $350B Wipeout

Canonical: https://stocksurgedaily.com/lessons-from-nvidias-350b-wipeout/

Hey, Ross here:

Let’s look at what’s going on with the #1 stock everyone’s paying attention to today – Nvidia.

**Chart of the Day**

![](/wp-content/uploads/2024/06/image-12.png)

This is how NVDA has moved for the past five days.

Even accounting for yesterday’s nearly 7% recovery – the stock is still down 10% from its intraday peak last Thursday.

That’s about $350 billion in market value wiped out in just a few days.

Now, I’m not saying NVDA will crash. With the amount of attention the stock is getting, we may see buyers step in to buy the dip.

But I also wouldn’t be surprised if the stock starts losing some of its dominance – and you shouldn’t be either.

Plus, as I explain in the Insight of the Day, it might actually be a good thing.

**Insight of the Day**

**Sector rotations are what keep a bull market going**.

What most traders don’t understand is that in a long bull market, it’s unlikely for the same sector to maintain leadership the entire time.

Sectors rotate leadership, and this rotation – just like healthy pullbacks – is necessary to keep a bull market going.

The mistake most traders make is confusing a rotation for a rout.

Which causes them to miss out on the opportunities that always come with a rotation.

Sure, Nvidia may be falling – but other sectors are rising.

In fact, even within the broader AI sector, we may be seeing a rotation.

Even if Nvidia plunges, it doesn’t mean it’ll take the entire AI sector along with it.

Instead, I believe it will cause a new class of AI stocks to rise…

**[And I explain what these specific class of stocks are in this video here.](https://gamemasterinvesting.com/war-room-ai-vsl-49/?tambid=24728)**

Embrace the surge,

![](/wp-content/uploads/2024/01/unnamed-12.png)

**Ross Givens**  
Editor, _Stock Surge Daily_