Shares of Nvidia surge nearly 7% to lead tech rebound

There is a guy on Nvidia right now talking about NVDA at a $6 trillion valuation, which isn’t the kind of thing you see at a bottom…

In any case, shares are up nearly 7% today in a huge rebound that nearly erases yesterday’s drop. The bounce came from just above the 38.2% retracement of the April-June move.

That’s an impressive move and it’s dragging along the Nasdaq, which is trading at a session high up 1.3%.

My question for the broader market: If NVDA revenues are $120 billion next year and climbing to $250 billion by 2029 — which is the consensus — where is that money coming from?

Nvidia said just two customers in Q1 represented 24% of revenue. Last year, one company was responsible for 19% of revenue. If we’re pricing in that much revenue for Nvidia, are we pricing in that much capex from megacap tech?

This article was written by Adam Button at www.forexlive.com.