In the cutthroat arena of Wall Street, where tech titans like Nvidia Corp (NASDAQ:NVDA) once reigned supreme with AI-fueled rocket rides, a gritty gang of gold miners is now delivering a merciless pummeling. Market guru Larry McDonald, the sharp-tongued founder of The Bear Traps Report and New York Times bestselling author, dropped a bombshell chart on X showing the gold miners-tracking VanEck Gold Miners ETF (NYSE:GDX) soaring while Nvidia’s stock ratio craters to 2.518.
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“Gold miners keep kicking Nvidia’s ass, why?” McDonald taunted in his viral post, igniting a firestorm of investor soul-searching amid a seismic shift from silicon dreams to shiny hard assets.
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The Great Rotation Rumble
Forget the Magnificent Seven‘s glory days – 2025 has been a brutal wake-up call. Gold miners (GDX) exploded 93%, silver miners, as tracked by the Global X Silver Miners ETF (NYSE:SIL) surged 90%, while Nvidia’s Mag7 crew, as tracked by the Roundhill Magnificent Seven ETF (BATS:MAGS) limped in at just 14%.
McDonald calls it a “historic migration of capital” from overhyped financial assets to undervalued commodities like gold, copper, and uranium.
With sticky inflation, Fed rate cuts favoring hard assets, and geopolitical chaos boosting gold prices toward $4,000 an ounce, miners are thriving. Meanwhile, passive investing distortions have bloated Nvidia’s $4.34 trillion market cap, dwarfing all copper, gold, and silver producers combined – a recipe for a painful correction.
AI’s Energy Blackout Blues
Nvidia’s AI empire demands colossal power, but McDonald exposes the glitch: The chip giant’s growth relies on an energy infrastructure “50 times smaller” than needed for mega data centers.
Uranium and nuclear stocks, worth a mere fraction versus Nvidia’s mammoth market cap, are the overlooked heroes poised to power the future – yet they’re undervalued gems in this rotation.
Gold hits all-time highs with massive ETF outflows, signaling retail investors haven’t piled in yet – room for more upside. As markets whisper warnings of stagflation and debt crises, McDonald’s mantra rings true: “Hard assets > Financial Assets.”
Savvy traders might ditch the Nvidia hype for a pickaxe – before the gold rush leaves them in the dust.
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