Middle East tensions escalated rapidly after US President Donald Trump said the temporary ceasefire agreement between the US and Iran ended. DJIA futures once tumbled more than 700 points and last slid 649 points or 1.2%; S&P 500 futures and Nasdaq futures last sank 1% and 1.5% respectively. AI chip giant NVIDIA Corporation (NVDA.US) dipped 1.8% pre-market at USD193.42.

NVIDIA has seen approximately USD1 trillion wiped off its market cap in less than two months, with its share price retreating to valuation levels set before the AI boom. Since setting a record high on May 14, the stock has grossed a decline of 18.2% as investors adjust AI trading strategies, selling NVIDIA and rotating into other semiconductor makers, particularly memory-related stocks.

According to data compiled by Bloomberg, the sell-off has pushed NVIDIA's forward PE down to 18x, the lowest since early 2019. The former market leader is now cheaper than the S&P 500, and the tech-heavy Nasdaq 100. The contraction in NVIDIA's valuation is not owing to deteriorating prospects, as analysts continued to raise earnings forecasts for the coming quarters.

The sell-off reflects a rotation in AI trades toward other segments, such as memory and storage stocks including Micron Technology, Inc. (MU.US). Even NVIDIA's rivals Advanced Micro Devices, Inc. (AMD.US) and Intel Corporation (INTC.US) have logged their share prices more than double or even triple this year.
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AASTOCKS Financial News
Website: www.aastocks.com

SG Top Picks
Stock & Type	Code	Strike(Call Level)	Last	Effective Gearing
Nvidia (C)	11185	275 (-)	0.117	5.9 X
Nvidia (P)	11090	168 (-)	0.199	3.9 X
MU (P)	11114	400 (-)	0.415	2.2 X
AMD (C)	11214	700 (-)	1.010	3.3 X