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NVIDIA is now the 'biggest company on Earth'. A 3.5% surge in the AI chipmaker’s stock on Tuesday (while most other tech stocks which declined), saw its market capitalisation top Apple and Microsoft for the first time ever. At close of business Tuesday, the Big N was worth $3.34 trillion, with Microsoft ($3.31 trillion) and Apple ($3.29 trillion) rounding out the top 3. To put this in persepctive, Bloomberg estimated that on Monday the total value of all stocks in the U.K. (Europe's biggest stock market) was $3.18 trillion. This is a reflection of the incredible growth in investment, confidence and, in some cases, hype around generative AI. Nvidia's chips are crucial in powering the Large Language Models that have dominated tech-talk for the last 18 months or so. But some tech experts and economists more broadly are urging caution at a stock and wider market that are giving off a lot of the signs of a bubble that could burst. Not that you're too worried about that if you got into Nvidia shares 5 years ago, at 1/3478th of what they are now worth!

Remember earlier this year when market bulls celebrated the rally broadening beyond the "Magnificent Seven" stocks? Well, the excitement might have been premature. As the indexes soared to new heights this month, it's worth noting that just four colossal technology stocks surged ahead, adding more market value than the entire S&P 500 combined. This trend underscores the dominance of major players like Nvidia, Microsoft, Apple, and Alphabet, whose substantial gains overshadowed the performance of smaller stocks. Let's delve into the factors driving this surge and the potential risks, with a special focus on Nvidia's remarkable run powered by artificial intelligence. 📈 Nvidia’s Dominance: Nvidia, Microsoft, Apple, and Alphabet added over $1.4 trillion in market value this month, outpacing the gains of the other 296 rising stocks combined. 🤖 One key driver of Nvidia's success has been the AI Boom. The company's ascent has been propelled by the soaring demand for AI microchips, making it the undisputed champion since the launch of ChatGPT. ⚠️ Potential Risks: Despite the hype, AI's limitations and competition could threaten Nvidia's earnings. 🏭 Competition: Companies like Alphabet, Meta, and Intel are vying for a piece of the AI pie, potentially limiting Nvidia's pricing power. 💰 Supply Chain Dynamics: Taiwan Semiconductor Manufacturing, Nvidia's main supplier, could demand a larger share of the profits, impacting Nvidia's margins. By examining these points, we can better understand the volatile dynamics in today's tech-driven market and the underlying risks investors might overlook. #StockMarket #TechStocks #Nvidia #AI #ArtificialIntelligence #Investment #S&P500 #Microsoft #Apple #Alphabet #MarketTrends #Economy #InvestmentRisks #FinancialNews #StockAnalysis

Dow Jones Futures: Nvidia AI Boom Keep Driving Market In the past week, the Federal Reserve reaffirmed projections to cut rates three times in 2024. Meanwhile, Nvidia (NVDA), Broadcom (AVGO) and Microsoft (MSFT) had upbeat AI events, while Micron Technology (MU) reported a surprise profit and strong guidance thanks to AI tailwinds. Nvidia, Broadcom and Micron stock had big weekly gains, along with a number of other AI plays. Microsoft stock had a modest gain to new highs, but is still actionable. But there was broad-based strength, with many sectors enjoying big gains while a diverse group of stocks flashed buy signals, including financials. Read more at infofinance.com

Investors may be caught up in a tech bubble led by #Nvidia. The surge in #AI stocks has caused many investors to overlook fundamental investing principles. Nvidia's success in the AI market has driven up its stock price, leading to a frenzy of buying. However, experts warn that this may be a sign of a bubble, as investors are chasing after the latest hot stocks without considering the underlying fundamentals. The article suggests that investors should exercise caution and remember the importance of a balanced and diversified portfolio.

Nvidia has become the undisputed leader in a stock market powered by AI hopes. Valuations are lofty for both the U.S. chip maker and the technology giants that are buying its products to train their AI models—a group dubbed the Magnificent Seven. Some investors worry a bubble may be inflating, such as the dot-com mania of the late 1990s. But the famous “Nifty Fifty” stocks of the 1970s are a better guide to today’s hopes and fears: When it comes to blue-chip stocks, the term “bubble” is a misnomer, even if valuations are high and vast profits are being spent and made to prepare for a business with highly uncertain prospects. Such a market needs a different name.

Encouraged to see the impressive financial results of NVIDIA yesterday. The numbers are awe-inspiring: NVIDIA’s revenue for fiscal 2024 was up 126% to $60.9 billion, and its earnings per share were up by more than 200% from a year ago. How often does a mature company report triple-digit growth? No wonder Goldman Sachs is calling it “the most important stock on planet Earth.” NVIDIA is, potentially, right in the centre of the AI zeitgeist. If AI continues to deliver on its potential, and if companies like NVIDIA can continue to drive the industry in the direction that it needs to go, then results like this are just scratching the surface. Of course, there’s also the potential that it could be a “bubble-in-waiting,” as this AFR report covers. It’s important to be bullish on AI without making assumptions of its inevitability. After all, like every technology, it needs to continue to prove its worth: https://lnkd.in/e2TKy942

Huge tech For much of this year, headlines (including our own) have been devoted to the rise of Nvidia, and rightly so: its valuation is mind-boggling and it has almost single-handedly driven 2024’s “AI theme”. But, the rest of big tech has also been rising. Indeed, even Apple is now enjoying the “announce an AI product and watch your stock price go up” phenomenon, with its shares up some 14% in the last month. So, how much has big tech gained in 2024. As of Wednesday’s close, just 6 stocks have added an eye-watering $3.8 trillion in market capitalization this year. The rest of the S&P 500, the flagship index of America’s biggest public companies, have collectively added just $1.78 trillion. Nvidia alone has gained more than that ($1.86T).

A decline in investment in AI stocks marks the end of the 'AI tourists'... This is affecting companies across the AI ecosystem, from star player NVIDIA and its competitors AMD, Broadcom, Intel Corporation, Qualcom and Taiwan Semiconductor, to cloud computing specialists Microsoft and Amazon, and a host of generative AI developers. Whilst much of this is due to a decline in the US economy, the dip will no doubt encourage closer scrutiny of AI companies and a more selective approach to investment. https://bit.ly/3YDAjdt #AI #investment #stocks

The meteoric AI driven rise of Nvidia's stock has been phenomenal. However, some analysts are signaling that a correction might be on the horizon due to increasing competition and market dynamics. As a modest investor focused on long-term growth myself, I see these potential corrections as buying opportunities. I'm really wishing all stocks would go down to buy cheaper in the coming years, but since nobody can see the future I'll keep dollar-cost averaging. https://lnkd.in/dqmVEpgJ