Just how badly is the tech sector getting hammered in this post-midterm stock market reckoning? Well, put it this way: If you’d bought Krispy Kreme at the start of the year, you’d be doing better than someone who YOLOed their way into Nvidia at the same time, convinced the AI bubble could never burst.
For all the hype and bluster that has surrounded artificial intelligence and the massive infrastructure buildup around it, Nvidia sits just below where it started the year, at about $187 per share as of Friday afternoon. That’s well off the 52-week high of $243.37 that it hit back on October 6, and to be fair, the chipmaker was still sitting in the black for the year before the market sell-off that followed the midterms.
By contrast, if you went long into the pastry market and had diamond hands (sticky fingers?) for Krispy Kreme, you’d be sitting mighty pretty. The donut maker has, for whatever reason, skyrocketed this week even as the tech sector took a hit—presumably because the opposite of chips is fried dough. Its stock jumped nearly 31% on Thursday, hitting $5.03 per share before giving back some of those gains Friday. (The real reason is apparently that the company is expanding its franchising model and reported better-than-expected quarterly earnings.)
Another benefit of Krispy Kreme: It’s not facing down increased government scrutiny (probably). Bloomberg reported Friday that as Democrats gear up to take over the House and Senate, they’re staking out some big targets for investigations and potential regulatory crackdowns, and Nvidia is on the list.
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