Monday Takeaways: Panic Sellers Just Gifted You AI’s Leader at Fire Sale Prices

Shah Gilani|September 8, 2025

We just got handed the buying opportunity of the year…

While the S&P hits fresh records and small caps soar, this AI leader’s recent pullback has investors running scared.

But here’s what they’re missing: Any dip is pure opportunity.

Why am I so confident? Because the fundamentals haven’t changed:

• Magnificent Seven earnings still growing 20%+ year-over-year
• Fed rate cuts coming in September (likely 25 basis points)
• GDP running north of 3% with no recession catalyst in sight

The real story isn’t this AI stock’s temporary weakness – it’s the market broadening out. Financials led last week’s record run. Small caps are outperforming. Healthcare and utilities are finally participating.

This pullback in mega-cap tech is exactly what healthy rallies need.

Click on the image below to discover why this AI giant’s drop is your gain.

Transcript

Everybody, Shah Gilani here with your Monday Takeaways.

First and foremost, it’s another record week on Wall Street. Yes, indeed.

Markets went higher last week. The S&P made another record high. Tech was leading. Google had a fabulous week when some good news came out of the courts that they wouldn’t have to divest themselves of certain large assets, wouldn’t be broken up.

In fact, it was rather a bit of a… so let’s move on. Hence, the stock rallied, bringing some of the tech names up with it. But the most interesting thing about the record last week and how well markets have done and are doing, because futures are up this morning in the pre-market Monday, is that there’s a broadening out going on.

What led the markets higher last week to a record were financials.

And what was bringing up the rear were small caps that had a fabulous week. So small caps actually have been outperforming the last couple of weeks. We even have seen healthcare and utilities, the laggards, start to pick up. So there’s a broadening out in the rally, which is good because not all tech names are doing great.

Like I said, Google did great last week, but Microsoft and Nvidia have been a little bit of, I would say, laggards, perhaps worrisome for folks. So real quick, here’s what the S&P looks like. I can’t fault that, people. One-year chart on the S&P.

That’s April lows. Bang. Right up. Right back into this nice upward channel right along the bottom of this channel line as you can see here.

That tells me that we got back in that channel. We’ve got a lot longer to go, higher to go up into the right. Here’s what I mean by Nvidia.

Now the big dog of the market, little bit more than 8% of the S&P, not looking so healthy. Just kind of a bit of a rollover, rather frightening to a lot of folks.

I think Nvidia dropping is a good thing if you don’t own it. I think Nvidia is a buy. Anywhere down below $155, $150, you should be very happy.

I’ve got some bids down there to buy more Nvidia. I want it a lot lower, but certainly would add to it on a dip down there.

But the other laggard in the rally has been Microsoft, which has, similarly to Nvidia, just been rolling over and scaring a lot of folks.

So Microsoft, again, if you don’t own Microsoft, look for an opportunity to buy this dip.

Because at the end of the day, things are fine. The economy seems to be moving along. Yes, people, I get it.

The labor markets are starting to show some weakness, but that means that the Fed is likely going to have a 25 basis point… Some people say there’s reason for a 50 basis point cut at their September 16-17 meeting, and we’ll find out obviously on September 17. But, surely, it looks like a 25 basis point cut is in the offing. Stocks are going to like that.

And if the labor market is softening, but we don’t end up in a recession… and by the way, when it comes to recession and the fear of the labor softening is that, oh, it’s a precursor to we’re heading into recession. No. It’s not. It’s not necessarily that.

Recessions, for the most part, and it’s very rare that they don’t require a catalyst, and softening of the labor market is not a catalyst for a recession. It’s something to worry about for sure if it continues. And based on the revisions we’re seeing in non-farm payrolls, yeah, it’s something to certainly keep an eye on. But GDP is still performing well.

We’re heading north of 3%.

Atlanta Fed GDPNow is pointing to about 3% GDP growth rate. So that’s about the most up-to-date real-time data we have on GDP potential. And, again, as far as the Fed goes, they’re going to be supportive of the rally, likely to cut 25 basis points. That’s a positive. Earnings, people, absolutely fantastic.

Due to earnings, we’re talking the Magnificent Seven north of 20% year-over-year growth. And I know the question is, and I brought it up at the beginning of this, what about the rest of the market? Well, the rest of the market’s doing pretty darn good because the 493 other S&P 500 company stocks showed earnings growth of 8.1% year-over-year. Now the consensus was for earnings growth of 2.5% year-over-year.

8.1%. Wow. So, yes, the rest of the companies in the S&P 500 are growing earnings more than handsomely. So, yes, we’ve got tech leading the boat for the most part, which we have had for decades.

Now we’ve got financials pulling up their share, and we’re seeing a broadening out. So markets for me, the takeaway here is that markets look pretty darn good, pretty solid. Yes. We know September can be volatile, but so far so good.

The takeaway from all of this on Monday is looking backwards, things look good. Looking forward, I don’t see any major headwinds likely to abort this rally. Yeah. We’re going to have some increase of volatility now and then.

We’re going to have some dust-up because narratives may change. Maybe there’s once again this leaning into the AI narrative and have things gotten too frothy there. We’re going to see some of that again and again. That’s going to continue to crop up.

Is the CapEx spend too much in AI? How long is it going to take companies to manifest their deep investments into AI? Lots of stuff like that’s going to be out there. There’s always going to be out there.

But the fact of the matter remains, earnings, earnings, earnings are great. Things are good. Markets look good. Continue to carry on people.

That’s your takeaways for Monday. Go get them.