Wall Street analysts and traders alike earn their pay by connecting the dots in the stock market. This includes knowing that when there is one big winner, a suit of associated stocks could soon follow. In today’s market, it is clear to most that the technology sector has gotten most of the attention—and capital—from investors, with a specific interest in the artificial intelligence and semiconductor spaces.
Knowing that NVIDIA Co. (NASDAQ: NVDA) leads the pack in this dynamic, investors can either follow the masses behind this massive company and its financial results in the future or connect the dots and get a much better risk-adjusted return. In other words, shareholders in similar stocks might experience strong gains with less volatility.
