Jim Cramer announced that Nvidia remains the center of the AI universe despite the stock lagging. This is the same analytical framework people use when they insist their ex still thinks about them.
The stock goes down. Cramer says it's important anyway. This is called moving the goalposts, except the goalposts are now in a different stadium and possibly a different sport.
Nvidia's stock lags the market. But everything revolves around it. Like how the sun revolves around a black hole that's currently getting its ass kicked by Jupiter. The physics work if you squint and ignore physics.
Retail traders heard this and bought more calls. They reasoned that if everything revolves around Nvidia, the stock must go up eventually. These are the same people who think the Earth is flat because everything looks flat from their basement.
Cramer's logic requires you to separate a company's importance from its stock price. Which is technically possible. It's also technically possible to separate your head from your body, and the results are similarly useful for decision-making.
The AI boom continues. Nvidia powers it. The stock does nothing. This creates a paradox where the most important company trades like it sells rotary phones. Somewhere a technical analyst is drawing a triangle on a chart and calling it research.
Everything revolves around Nvidia the same way everything revolves around your friend who peaked in high school. Sure, people still talk about them. Doesn't mean you'd invest in their future.
Photo by Mariia Shalabaieva on Unsplash
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