War Risk Is Real and QQQ Investors Simply Do Not Care

"We are in black swan territory - the Strait of Hormuz blockade, Taiwan tensions, and AI valuations stretched to the limit. This is not a normal correction. NVIDIA, Microsoft, Meta, Alphabet, and Palantir represent roughly 24.61% of QQQ, with NVIDIA alone being the fund's single largest holding at 8.63%."

"NVIDIA posted $68.13 billion in Q4 FY2026 revenue, up 73.2% year-over-year, with Data Center networking surging 263% YoY to $10.98 billion. Microsoft crossed $50 billion in cloud revenue for the first time in a single quarter, with Azure growing 39%. Meta reported a $100 billion AI deal with AMD that briefly sent weekly sentiment to 82."

"The Earnings Are Real, But So Is the Skepticism. These are not rumor-driven moves. Still, r/stocks is wrestling with whether the numbers justify the prices. A post asking about China taking Taiwan collected 4,506 upvotes and 1,346 comments. The concern is real. The selling has not followed."

Oil prices have risen 10.3% in a month due to Strait of Hormuz blockade concerns, while the VIX sits at 23.57, prompting Reddit communities to label conditions as "Black Swan Territory." However, retail investors holding NVIDIA, Meta, and Microsoft continue to remain bullish despite these warning signs. The QQQ index shows minimal declines, with these five mega-cap tech stocks representing 24.61% of the fund. Meanwhile, earnings reports demonstrate strong fundamentals: NVIDIA achieved 73.2% YoY revenue growth with Data Center networking surging 263%, Microsoft crossed $50 billion in quarterly cloud revenue with Azure growing 39%, and Meta announced a $100 billion AI deal. Despite geopolitical risks including Taiwan tensions and Venezuela concerns, retail sentiment remains resilient, with selling pressure notably absent despite acknowledged market risks.

Read at 24/7 Wall St.