Title: Navigating Nvidia's Stock Dip Tagline: Navigating Nvidia's Stock Dip: How Understanding Cross-Price Elasticity Saved a Tech Executive $120,000 Problem: John, a 55-year-old CTO, holds a significant amount of Nvidia (NVDA) RSUs vesting over the next two years, crucial for his retirement. News of potential supply chain disruptions sent NVDA stock tumbling by 8%. John panicked, concerned this drop would significantly impact his retirement nest egg. He remembered hearing about the interplay between competitor stock prices and worried AMD's performance was further dragging NVDA down. He needed a way to quickly assess if AMD's (or other competitors) pricing power influenced the NVDA dip before making any rash decisions, like prematurely selling his shares. Solution: Using the Cross Price Elasticity Calculator, John input the percentage change in NVDA’s stock price (-8%) and the corresponding percentage change in AMD’s stock price (-3% at the same time). The calculator revealed a cross-price elasticity of 2.67, indicating that NVDA and AMD are substitutes and a relatively high degree of responsiveness. Further research using financial news sources revealed the Nvidia drop was tied specifically to short-term AI chip news, not long-term competitive pressure from AMD. Instead of selling, John waited to see what would happen. After 2 weeks, Nvidia rebounded by 15% due to renewed enthusiasm in the AI sector and news of a major data center deployment of Nvidia's new Blackwell chips. ROI: By understanding the cross-price elasticity and resisting the urge to sell during the initial dip, John avoided locking in losses and capitalized on the rebound. He retained ownership of RSUs that increased in value by $120,000 (based on his original holdings of 8,000 shares and the $15/share rebound), substantially strengthening his retirement portfolio. Description: Uncover hidden investment opportunities by analyzing the relationship between Nvidia and AMD stock prices. Category: Client Service