Nvidia has had strong earnings this year, driving the stock market to all-time highs. However, the market’s rebound appears to be uneven, with most gains concentrated in mega-cap tech stocks like the Magnificent Seven. Nvidia’s shares have surged 164% this year, making it the world’s largest public company at one point.
The chipmaker’s success is driven by its unrivaled technology in producing processors for AI systems, like generative AI behind OpenAI’s ChatGPT. Despite this, the overall market seems less optimistic, with sectors other than information technology and communication services posting single-digit gains.
In an interview with Christopher Barto of Fort Pitt Capital Group, concerns were raised about the market’s reliance on Nvidia and whether its monster streak will continue. Barto emphasized the importance of owning mega-cap companies like Google, Amazon, Microsoft, and Metas to benefit from AI trends.
Mortgage rates have also fallen to their lowest levels since early April, providing some relief to the housing market. However, rates remain higher than pre-2022 levels, and economists do not expect them to drop below 6% this year.
OpenAI co-founder Ilya Sutskever announced his new venture, Safe Superintelligence Inc., dedicated to building secure AI. The company aims to address concerns about AI advancing faster than safety research and regulation. Sutskever, a pioneer in the AI revolution, has a track record in creating AI startups and working on Google’s AI research team.
Overall, the market’s performance is fueled by tech giants like Nvidia, while concerns about market concentration and the pace of AI development persist. Mortgage rates offer some relief to the housing market, and Sutskever’s new venture reflects the growing need for secure AI technologies.
Article Source
https://amp.cnn.com/cnn/2024/06/21/investing/premarket-stocks-trading-nvidia
