Navigating Tech Turbulence: Insights on NVIDIA and Market Volatility

The countdown is on for Nvidia's earnings on Wednesday as the world's largest company by market cap steps into the spotlight.

While the Nvidia has held on to a gain in 2026, the broader tech sector is reeling from quite a turbulent start to the year.

Microsoft is down more than 70% while Amazon has shed 11% as investors.

The durability of the cloud as well as software models in an AI-driven landscape and beyond the hardware boom, a deeper disruption is taking hold in software and real estate services where concerns over AI displacement are driving significant sell-offs.

Well joining me to break down the volatility as well as the macro outlook for tech in this pivotal midterm years is Dale Smothers, founder and CEO.

Of RD as well.

Dale, good morning.

Thank you so much for joining us.

Well, we are looking at Nvidia shares higher this morning and leading the Dow into slightly positive territory.

And here today we are looking at Nvidia up just 2%.

So is the market telling us that even historic caps from the hyper scalers is already fully priced into the.

I think the market is definitely telling us that this particular stock is either going to move one way or the other very, very highly, very, very low, and the reality is I think this overreaction could very easily be again an overreaction either way.

I believe that Nvidia is primed for the next for the last 3 months it's been trading pretty flat.

I think it's primed to go higher on the backs of this earnings report if it proves to us that it is continuing to see a growth in earnings.

You know, it's not priced to perfection anymore, Remy.

It's priced for proof.

And if Wall Street gets that proof, I think that it goes higher from here.

If it doesn't get that proof or it has a little bit less than stellar forward guidance, I think it follows the names like you just mentioned.

Amazon and Microsoft and we see a little bit of a selloff here with Nvidia.

I'm not in that camp.

I believe that Nvidia goes higher on the backs of earnings and for that reason we're buying Nvidia right now.

Yes, so you hinted at the AI disruption fears that have been driving this volatility in the marketplace.

So give us your breakdown of how you're looking at hardware versus software right now and why.

Yeah, every time that artificial intelligence innovates in a sector, Wall Street holds a funeral for the old guard.

They look at it almost as the AI angel of death when it comes knocking at a door.

They sell off every particular company perhaps that has done this in the past.

That is not the route that we are taking here at RDS Wealth.

We believe that this is producing opportunities in names, and one that we're watching very closely right now is into it.

You know, into it, I think you're catching a falling knife at the moment if you try to buy it.

But as we start to see a turnaround, especially leading into next quarter's earnings, I think it would be a wise move to start looking at these names for opportunities for our clients.

One of the ways that we're kind of playing this disruption as well in the Mag 7 is Amazon.

I think Amazon was oversold greatly, and you know it has a sticky customer base.

It's got this continued spend in AI which it needs to be quite frank with you.

I think that Wall Street punished Amazon for its AI spend, and that's completely the opposite of what it should be doing.

I think the market has it wrong with Amazon right now.

As a matter of fact, if you want to take it a step farther, I think Amazon might very easily be a value stock as it stands as it stands right now. and this week we're paying attention to in video earnings that coming out midweek and of course the state of the Union, but how should investors position themselves during this midterm year volatility as as you mentioned, the mag 7 leadership seems to be fragmenting for the first time in years.

Sure, you know, we work with clients who are approaching or maybe even in retirement income phase where they need stability and so pieces of these names like we've been mentioning, you know, pieces, just small pieces here or there, make up an entire portfolio.

I think this is the growth or speculative part of the portfolio right now.

We have inside of that speculative and growth portfolio a name like RSP, this particular fund.

It's a way to play the other 493 because no longer is this market led by the MG 7, that 493 strength that we've seen in the broadening out, for instance, Consumer Staples, my goodness, up 13% year to date, outperforming the overall market.

I think you've got RSP as an equal weighted position.

You see a cyclical trend or a rotation out of the mag 7 into other names, and then what you're going to see is a sell-off in some of these mag 7 names, some of these AI-based names.

As you see these sell-offs, you buy back in, which is exactly what we're doing again with Microsoft and Amazon.

We're pulling from the RSP position and buying into names that have been heavily sold at this moment.

Well Dale, we will have to leave it there for today, but thank you so much for joining us as we kick off the final trading week of February.

Always a pleasure, Remy.