Source: ABC News (Australia)
Nvidia's share price has surged, but will it last? | The Business
Jun 27, 2023 · 3m 44s
https://www.youtube.com/watch?v=FSzCnbgSOLw
trillion dollar Club getting a new member today Nvidia becoming the first ever chip stock to reach that milestone the VIP tech club once known as the Fang stocks has become the Magnificent Seven and its newest member Nvidia is driving the hype if we take the largest seven companies which includes Nvidia but also Amazon Tesla Google Microsoft Apple and so on they're up collectively uh 50 year
to date and that compares to the rest of the companies in the misky US index which are unchanged it's really being driven by this almost frenzy into AI really came to the floor when Nvidia you know announced their earnings and their forward projections that just blew everything out of the park [Music] about 2 about 200 percent of this year here the company makes Graphics processing units
known as gpus and while it's been around since the early 1990s it wasn't until the rapid rise of chat GPT which is powered by tens of thousands of gpus from Nvidia that most of us outside Silicon Valley even heard of it that's been the most quickly adopted consumer generative AI tool ever by quite some margin I had a tick tock and Instagram and other apps so
Nvidia released a chip called the h100 and large buyers such as Amazon for example are buying these chips in the tens of thousands what that's done is that has increased revenue for NVIDIA substantially and so they reported a 50 jump in Revenue in the last quarter investors want in and they're prepared to pay and not just for NVIDIA Nvidia shares hit new all-time highs today everyone
right now is scrambling in the in the wake of that to find AI Place The Magnificent Seven stocks have been swept up in the wave as investors look to capitalize on the growing popularity of AI you look at anything outside of AI and it looks like we're in a bear market and it looks like the Market's saying we're in a recession the U.S stock market is
a world away from Australia but anyone with a superannuation fund is likely benefiting from this rally because our super funds invest in U.S shares but analysts say worsening economic conditions could weigh on the Magnificent Seven and other linked stocks through the second half of the year with inflation interest rates Etc and we still see flowing demand across a lot of Enterprises today and those interest rate
Rises have an effect an effect that could put the brakes on this investment boom I don't see how the second half of the year for those seven stocks can be the same as the first half making money from new technology often leaves investors disappointed and often that new technology benefits the consumer more so investors beware
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