TL;DR

Trump’s supposed deal with Nvidia looks like a classic pump and dump, echoing past market manipulations. Retail investors, as always, are left holding the bag.

Story

Trump’s Art of the Deal? More like Art of the Steal. The Nvidia saga reeks of manipulation, mirroring past pump-and-dumps that have decimated markets.

It started with a $1 million Mar-a-Lago dinner. Jensen Huang, Nvidia’s CEO, dines with Trump, promises $500 billion in US AI server investments by 2029, seemingly securing a deal allowing continued H20 chip exports to China. Trump administration initially backs off Nvidia’s ‘H20’ chip crackdown.

But the deal was a mirage. Trump promptly bans H20 exports, sending Nvidia stock tumbling. Nvidia warns Trump curbs on China AI chips to cost $5.5 Billion. The $500 billion investment? Likely vaporware—a promise easily broken once Trump is out of office. Remember Foxconn’s Wisconsin factory? Trump touted a $10 billion investment; the reality was less than a tenth of that.

This echoes 2008, Enron—inflated promises masking underlying rot. The pattern’s clear: a charismatic leader, a gullible public, and a market built on sand. ‣ Pump and dump: Artificially inflating an asset’s price (pump) before selling high and letting others absorb the crash (dump).

What’s the human cost? Retail investors lured in by the hype, left holding the bag as the market tanks. Retirement accounts evaporate, dreams turn to dust.

This is a cautionary tale. Don’t be fooled by shiny promises or political theater. Due diligence and skepticism are your only armor in this rigged game.

Advice

Don’t trust politicians bearing gifts. Research before investing, especially in volatile markets. Remember: if it sounds too good to be true, it probably is.

Source

https://www.reddit.com/r/stocks/comments/1k0c118/so_trump_played_art_of_the_deal_against_jensen/