Key insights
- The author expresses concern about the crowded nature of the AI/Tech trade, specifically mentioning NVDA, MSFT, and AMD. While acknowledging the trend's persistence, they've started trimming positions due to valuation and sentiment concerns. This suggests a potential shift in market positioning, with some investors reducing exposure, which could lead to increased volatility or a correction in these high-flying stocks.
Over the past year it feels like the same trade has just kept working: big tech + anything AI-related. Names like NVDA, MSFT, AMD - every dip gets bought, sentiment stays bullish, and it’s been hard to justify stepping aside.
But at the same time, I’m starting to feel a bit uncomfortable adding at these levels. Not calling a top, just feels crowded. I’ve trimmed a bit, but now I’m second guessing it every time the market pushes higher.
Is anyone here actually reducing exposure, or are you just riding the trend until it breaks?