Nvidia’s exceptional performance in the stock market has been a major factor in driving record highs for the S&P 500, Nasdaq, and Dow Jones indices. According to The Wall Street Journal, Nvidia’s record market cap has contributed to the eighth consecutive record day for the S&P 500 and the 31st of the year. Analysts at The Motley Fool have praised Nvidia as a “spectacular purchase” due to its position as the world’s leading maker of AI hardware, offering a hedge against the uncertainty in the technology sector. Business Insider reports that Wall Street is optimistic about Nvidia’s future, with one analyst predicting a $10 trillion valuation for the company by 2030.
Nvidia’s success is also attributed to its strategic investments in Southeast Asia, following the footsteps of other tech giants like Apple, Microsoft, and Amazon. Bloomberg highlights the attractiveness of Southeast Asia as a tech investment destination, citing its resilience to geopolitical tensions, political stability compared to other regions, and support for cross-border investments. Tech giants are expected to invest $60 billion in the region for data centers alone in the coming years, establishing a strong foothold in the fast-growing market.
Despite concerns of a potential dot-com-like bubble in the AI market, analysts from firms like UBS and BlackRock have downplayed these fears. Citywire reports that BlackRock believes there is no AI bubble, pointing to the profitability of mega-cap tech companies as a key differentiator from the dot-com era. The Wall Street Journal adds that investors see differences between the current AI landscape and the dot-com boom in factors such as the speed of change, market size, and the maturity of valuable companies in the sector.
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https://www.semafor.com/article/06/19/2024/nvidia-overtakes-microsoft-to-become-worlds-most-valuable-company
