This AI infrastructure play has delivered bigger gains than its larger peers since going public earlier this year.

Following the robust rally, NVDA's valuation has reached an elevated level, with its Price-to-Sales (P/S) at 30, markedly higher than the sector median of 3. This suggests the stock is priced at a premium compared to its peers.

The week’s biggest news for Wall Street is likely arriving on Friday, when Federal Reserve Chair Jerome Powell will give a highly anticipated speech in Jackson Hole, Wyoming. The setting has been home to big policy announcements from the Fed in the past, and the hope on Wall Street is that Powell will hint that an interest rate cut is coming soon.

Nvidia (NASDAQ: NVDA) shares fell 3.5% on Tuesday, closing at $175.64, as tech stocks broadly pulled back following a recent rally. The chipmaker traded 183 million shares, just above its three-month average of 181 million, signaling a cooling of momentum after reaching record highs earlier this month.

The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of big tech.

Should you Buy Or Fear Nvidia stock? For event-driven traders, historical trends might provide an advantage, whether by positioning prior to earnings or responding to post-release movements. That said,

Nvidia Corporation shines as a top AI infrastructure pick, driven by strong fundamentals, strategic moves, and growth catalysts. Click for my NVDA earnings preview.

A flight to quality trade happens when investors begin to get more defensive and risk-averse, buying stocks that they perceive as higher-quality and avoiding low-quality ones. It’s typical of a market that is seeking safety as some investors bail out, and may presage a market drop.