GTC Wraps Up, Nasdaq Halts Four-Week Dip: What's Next for U.S. Tech Investing?
Last Friday, major U.S. stock indexes staged a late rally, with the $S&P 500 Index (.SPX.US)$ and $Nasdaq Composite Index (.IXIC.US)$ posting weekly gains of 0.51% and 0.17%, respectively, snapping a four-week losing streak. Nvidia's GTC conference concluded, yet the stock slipped over 3% for the week.
In recent weeks, two unexpected narratives have reshaped global asset valuations. First, DeepSeek’s breakthrough has spotlighted Chinese innovation, prompting a reevaluation of tech leadership. Second, shifting perceptions of “American exceptionalism” under Trump's policies have triggered a broader reassessment of global geopolitics and economics.
Year-to-date, U.S. tech stocks have underperformed. Among the BATMMAAN cohort (Big Tech giants), only $Meta Platforms (META.US)$ has eked out a modest gain. Meanwhile, Cathie Wood, known for her bold tech bets, recently trimmed her Meta stake for the first time in nearly a year.
For AI-driven U.S. equities, the outlook is “long-term bullish, short-term cautious.” GTC 2025 underscored AI's cutting-edge potential, but market adoption faces hurdles like supply chain bottlenecks and high costs. Investors should watch short-term risks, including tighter Fed policy, uncertainty around Trump's tariffs, and debates over whether AI spending will peak in 2025.
Short-Term Outlook and Strategies
There are lingering concerns that U.S. tech may still be overcrowded. According to Reuters, valuations in Europe and China remain compelling—Hong Kong’s HSI, buoyed by DeepSeek, trades 55% below the S&P 500, while Europe's STOXX 600 sits at a 36% discount, with a forward P/E nearly half that of the Nasdaq 100.
For investors wary of near-term tech weakness, options offer flexibility. Holding tech stocks? Consider a Protective Put or Covered Call. No shares? Opt for buying puts or a bearish put spread to hedge or profit from declines.
Long-Term Tech Investment Themes from GTC
At GTC, Nvidia unveiled a bold roadmap, cementing its compute power leadership and spotlighting investment potential. The Blackwell Ultra (late 2025) promises 50% better performance, followed by Vera Rubin (mid-2026) with a 3.3x leap, Vera Rubin Ultra (2027) with a 14x jump, and the Feynman architecture (2028). This AI chip innovation will drive industry growth. Key topics to watch include:
1. Robotics and Physical AI: The Next Frontier
CEO Jensen Huang emphasized a transformative shift from generative AI (e.g., ChatGPT) to agentic AI, and ultimately to physical AI—where AI powers robotics in the real world.
Nvidia's updated CUDA-X toolchain, featuring the Newton physics engine (co-developed with DeepMind) and cuOpt optimization tools, accelerates robot training and industrial simulations. The open-source Isaac GR00T N1 model for humanoid robots, leveraging digital twin technology, positions Nvidia to revolutionize automation. This evolution signals a breakout opportunity in robotics and industrial tech.
2. AI Applications：From Tools to Transformative Solutions
Huang highlighted the transition to agentic AI, capable of autonomous planning and complex reasoning, unlocking potential in high-stakes fields like financial risk management and medical diagnostics.
Over the past two years, U.S. AI investment has centered on compute hardware leaders like Nvidia, but 2025 is poised to see capital flow downstream. Stocks such as $Atlassian (TEAM.US)$, $Cloudflare (NET.US)$, $Palantir (PLTR.US)$, $Applovin (APP.US)$, $Tempus AI (TEM.US)$, $Duolingo (DUOL.US)$, $Doximity (DOCS.US)$, and $monday.com (MNDY.US)$ delivered standout gains—many surging by double-digit percentages—before peaking in mid-February.
While recent uncertainties have dampened market risk appetite, a recovery could reignite interest in AI application stocks, positioning them as key market drivers once again.
3. Quantum Computing
Nvidia kicked off its first Quantum Day at GTC, unveiling a new quantum research lab in Boston. CEO Huang admitted to underestimating quantum's pace of development, positioning Nvidia as a collaborator—rather than a competitor—in this nascent field. By integrating hardware, software, and ecosystem partnerships, Nvidia aims to drive quantum technology forward.
While quantum stocks like $Quantum Computing (QUBT.US)$ have faltered in 2025, Nvidia's entry underscores the sector's long-term promise for patient investors.
In summary, while U.S. tech faces short-term headwinds, GTC 2025 reaffirmed AI's transformative trajectory. Patient investors with an eye on Nvidia’s GPUs, robotics, and quantum advancements could find rich opportunities in the years ahead.
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