Tech stocks close out best first half in 40 years, powered by Apple rally and Nvidia boom

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The Nasdaq's 32% rally in the first six months of the year marked the best first half for the tech-heavy index since it jumped 37% in 1983.

Talkington, whose firm holds Nvidia shares, said the chipmaker has a unique story, and that its growth is not shared across the industry. Rather, large companies working on AI have to spend heavily on Nvidia's technology.

"Nvidia not only owns the shovels and axes of this AI goldrush," Talkington said. "They actually are the only hardware store in town."Apple hasn't seen gains quite so dramatic, but the stock is still up 50% this year, trading at a record and pushing the iPhone maker to a $3 trillion market cap. Apple still counts on the iPhone for the bulk of its revenue, but its latest jump into virtual reality with the announcement this month of thehas helped reinvigorate investor enthusiasm. It was Apple's first major product release since 2014, and will be available starting at $3,499 beginning early next year.

That sounds like a lot, except when compared to the price tag for the initial Lisa computer, which Apple rolled out 40 years ago. That PC, named after co-founderApple's revenue in 1983 was roughly $1 billion, or about the amount of money the company brought in on an average day in the first quarter of 2023 Tech was the clear story for the equity markets in the first half, as the broader S&P 500 notched a 16% gain and the Dow Jones Industrial Average rose just 2.9%.

 

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