NVIDIA and Other AI Hot Stocks See Increased Volatility, with a Relative Volatility 4x Higher Than the S&P 500 Index

BlockBeats News, July 19th, The Kobeissi Letter reported that the three-week volatility of US momentum stocks relative to the S&P 500 Index has increased to 4 times, reaching a historical high. This ratio has grown by over 4 times in the past few weeks.

This momentum stock group includes high-growth tech stocks at the center of the AI frenzy, such as Nvidia, AMD, Palantir, D-Wave Quantum, and CoreWeave.

For comparison, this ratio reached a high of about 2 times during the market crash in 2020 and about 1.8 times during the bursting of the dot-com bubble. The current level significantly exceeds those periods.

Meanwhile, the US Momentum Stock Index has fallen by 24% since July, marking the largest monthly decline since the 2008 financial crisis. Stocks that were previously top performers are rapidly losing favor in the market.