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This Bearish Options Trade Could Pay Off If AI Jitters Hit Nvidia Stock

RUSS BRITT

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⚡ Quantum Brief

AI stock momentum wavered last week as Oracle and Broadcom reported disappointing earnings, sparking broader doubts about sustained AI spending growth. The underperformance marks a potential turning point for the sector’s high-flying valuations. Nvidia, the AI chip leader, saw shares dip 4% last week before rebounding Monday, defying broader sector weakness. Analysts like J.P. Morgan still project upside, citing its dominant market position in AI hardware. Investors are increasingly hedging against Nvidia’s volatility using bearish options strategies, like put spreads, betting on a pullback if AI demand falters. This reflects growing caution amid record-high valuations. The article highlights rising skepticism about whether corporate AI investments will yield near-term returns, pressuring tech stocks reliant on sustained hyperscale spending. A brief mention notes quantum computing’s long-term threat to cryptocurrency security, though unrelated to the core AI stock analysis. The focus remains on Nvidia’s near-term market risks.

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RETIREMENT: 3 Questions That Keep Millionaires Up At NightIt was a weak finish last week for artificial intelligence stocks, with notable names such as Oracle (ORCL) and Broadcom (AVGO) reporting disappointing results. That news has investors beginning to finally more seriously question the sustainability of AI-related spending, as well as the top stock in the field — Nvidia (NVDA). Shares of Nvidia have so far held up relatively… 12/15/2025 Nvidia rises on Monday after a 4% fall last week. J.P. Morgan analysts see more upside due to its "immense... 12/15/2025 Nvidia rises on Monday after a 4% fall last week.... In the wrong hands, quantum computing could undo cryptocurrency security features. (© Gary Neill)Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!Get market updates, educational videos, webinars, and stock analysis.Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content.Information in Investor’s Business Daily is for informational and educational purposes only and should not be construed as an offer, recommendation, solicitation, or rating to buy or sell securities. The information has been obtained from sources we believe to be reliable, but we make no guarantee as to its accuracy, timeliness, or suitability, including with respect to information that appears in closed captioning. Historical investment performances are no indication or guarantee of future success or performance. Authors/presenters may own the stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any specific investment strategies. Information is subject to change without notice. For information on use of our services, please see our Terms of Use.*Real-time prices by Nasdaq Last Sale. Real-time quote and/or trade prices are not sourced from all markets. Ownership data provided by LSEG and Estimate data provided by FactSet.IBD, IBD Digital, IBD Live, IBD Weekly, Investor's Business Daily, Leaderboard, MarketDiem, MarketSurge and other marks are trademarks owned by Investor's Business Daily, LLC.©2025 Investor’s Business Daily, LLC.

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