While Nvidia retreats, other AI behemoths are taking up the mantle. The AI juggernaut continues to power ahead.
One of the general market observations is that stocks, even if they are in the same sector, do not peak simultaneously. Some earlier; some later.
During the Great Financial Crisis of 2007/8, for example, Bear Stearns and Lehman Brothers were the first to top out. Both did so in early 2007. A year later, Bear Stearns collapsed into oblivion.
Goldman Sachs (GS), on the other hand, managed to make one last rally to fresh high in October of 2007, before succumbing to the general market malaise.
In the same way, the current AI boom will see stocks peak in different waves. Some leaders will achieve their potential in the first wave, then others will take over the sector leadership later.
In an earlier post, I highlighted some severe drawdowns in the AI industry already, from Oracle (ORCL) to Meta (META).
But at the same time, some other AI-tech stocks are experiencing a rise in buying pressure.
Apple (APPL), which just released a highly sought after iPhone, advanced to new all-time highs. Broadcom (AVGO), the trillion-dollar semiconductor company, saw its share price surge to uncharted territory.
The biggest gainer, by far, is Google (GOOG). The company’s most advanced generative AI product – Gemini 3 – is creating a massive boost to its share price.
“I’m not going back to ChatGPT!” screams the CEO of Salesforce Marc Benioff, who tested Gemini for the first time this week. That’s how powerful Google’s Gen-AI engine has become. [1]
These tech companies are spearheading the current up-wave of the AI rally.
What about other sectors?
Well, Eli Lily (LLY) recently made big headlines, by becoming the first non-tech related company to hit $1 trillion market cap.
Its share price, plotted below, gained more than 50 percent since late September. The breakout at $900-1,000 was so powerful that prices have not stopped rallying since.
Mind you, Walmart (WMT) is not far behind. At $870 billion, the supermarket titan is looking to break into the Trillion-Dollar Club soon, especially as its share price chart is gearing up for a strong rally to new all-time highs from that $100 support.
What are the implications of all these?
For one, it tells us that the equity super-bull cycle is not yet over. While some stocks have regressed, others have rebounded and are taking over the leadership.
Two, the rally in tech appears to be broadening, from pharmaceuticals to supermarkets. Even financials are doing well these days. This may mean a slight decline in the dominance of Big Techs.
Three, the bullish stock trends in America may spread to other international markets. Look at the number of stock indices that surged to new all-time highs this year.
Overall, the bulls remain in control of Wall Street. The Santa Rally is still on track.
