$AMD(AMD.US)Context: AI and data center-linked stocks tumbled Thursday as Democrats’ sweeping midterm victory fueled con…
$AMD(AMD.US)
Context: AI and data center-linked stocks tumbled Thursday as Democrats’ sweeping midterm victory fueled concerns about potential hurdles to the industry’s rapid expansion. Multiple experts warned that some U.S. data center capacity scheduled to come online in 2028 could be at risk from construction pauses. Citi Research added to the anxiety when it flagged an "exponential" new threat to data centers as it tracked increasing pauses and cancellations on construction. Other headwinds piled on. China’s delay in approving imports of Nvidia’s H200 chips and a soft profit outlook from Qualcomm added pressure, while the Nasdaq fell 5.5%. CNN’s Fear & Greed Index dropped to a reading of 20, in the "Extreme Fear" zone, versus a prior reading of 34.
My Trade: Didn't expect the drop to be so deep and the fear to be so widespread so I entered a day too early. Despite that, I'm looking for strong reversal momentum to take profit afterwards.
Takeaway: Today's rebound is sort of expected as short sellers start to cover their positions. I'm not surprised if more slides continue next week before the prices stabilise. @Captain's Treasure
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