Dear Nvidia Trader:
I want to welcome you to Nvidia 4-D formally…
Over the next eight weeks (we start our formal Masterclass on October 7), we will be diving deep into the importance of the AI trade… the size and scope of what’s possible for investors and traders… and exploring the real drivers of the global markets and how these elements have fueled the incredible rise of NVIDIA.
To get started today, I want to show you just how powerful this trend has been over the last five years. The Magnificent Seven (the top seven stocks on the S&P 500 by weight) now represent roughly 35% of the entire index.
What has driven this?
AI has been a MASSIVE influence – fueling the rise of NVIDIA to more than $4.3 trillion in market capitalization. The AI trend has been a huge influence on the other core elements that we will explore (increasing capital flows, passive investments, massive insider buying levels, and public policies that dramatically fuel the ongoing AI wars between the United States and China.)
The United States is in a continued battle against her rivals. Investment in the “powering up” in America is surging. The chart below from Bloomberg and
Zerohedge showcases that this trend will continue…
As AI dominates, NVIDIA remains the “pick and shovel” player that sets itself apart from every other player in the space. NVIDIA is at the core of every major investment. Its chips are vital to the success of everyone… including the politicians pushing policies forward.
What’s incredible about NVIDIA – and why it’s the backbone of the market is evident in the ongoing rally of the stock market since the GILT Crisis (which we’ll explore) in 2022.
Since the launch of ChatGPT, which arrived at the bottom of the recent liquidity cycle, stocks linked to AI have driven 181% gains in the primary names. The rest of the S&P 500?
Just 25% gains…
About 75% of index returns from the S&P 500 since November 2022… are coming from AI.
80% of the earnings growth? AI.
And 90% of all capital expenditure growth as well…
AI combined with increasing capital flows and liquidity in the global markets are powering the “bull market.”
And NVIDIA is now worth more in market capitalization than the entire German economy.
The AI rally is unprecedented… and what’s great?
It’s not close to over yet.
Now, there will be hiccups along the way…
And when this rally does end – as they always do – the impact on some of the more speculative names that we’ll discuss will be significant. Companies without links to NVIDIA could see a huge collapse. NVIDIA itself could witness massive outflows like we witnessed in April 2025. That is where you’ll be able to trade NVDQ, which surged from $3.10 to $4.84 in less than two weeks.
But here’s the thing… as you’ll learn – any significant downturn will ultimately lead to changes in policies that accommodate the financial markets… and that accommodation will only support NVIDIA and lead to its rise again…
The Masterclass and additional 12 sessions will take you into many subjects linked to AI, global markets, public policy, and the opportunities now and in the future.
In addition, we’ll spend an entire session focused on how to use AI yourself to improve your trading, track your trades, and much more…
I look forward to spending the weeks ahead with you, actively trading, and turning our attention to how markets work. I expect great things for us…
And I thank you for joining NVIDIA 4-D.
See you soon,
Garrett Baldwin
