A Tale of Two Stocks – NVIDIA and Newmont – February 29th 2024

In Charles Dickens classic novel A Tale of Two Cities he wrote about how it was the best of times in London, as the UK was a superpower of the world, and it was the worst of Paris in France as the French were going through revolution, hyper inflation and violence.

The same thing could be said right now of two stocks whose tickers both begin with the letter N. With both being the largest companies in their sectors (Semiconductors and Gold Mining). These being Nvidia and Newmont. 

Recently Nvidia, which is the poster boy of the AI boom and bubble, reported fantastic earnings, which saw the stock gap up and climb to an over $2 trillion market cap. Whereas Newmont reported miserable earnings and discussed having to sell assets and cut its dividend. At the moment tech stocks and especially AI stocks such as Nvidia are flying high whereas gold stocks such as Newmont are crashing with Newmont now down over 70% from its 2022 highs.

The question is do these earnings reports represent the two ships crossing in the night moment for AI and Gold with Nvidia’s strong earning report representing irrational exuberance for AI and Tech stocks and Newmont’s miserable report representing maximum pessimism in Gold stocks? Only time will tell.