Citigroup strategist Scott Chronert says the first-wave of artificial-intelligence breakthroughs lifted the stocks of companies like Nvidia that are at the centre of it all. The second will elevate the market at large.
While the market’s gains stalled on concern about the scale of the run-up and further rate hikes from the Federal Reserve, the tech-heavy Nasdaq 100 Stock Index is still up some 37 per cent this year.
The excitement about artificial intelligence was a key pillar of the stock market’s rally this year, turning Nvidia into the best-performing stock in the SP 500 Index as the share price tripled on the back of sales of its high-powered computer chips to companies investing in the technology. While the market’s gains stalled on concern about the scale of the run-up and further rate hikes from the Federal Reserve, the tech-heavy Nasdaq 100 Stock Index is still up some 37 per cent this year.
According to Chronert, the release of first-quarter earnings prompted a rush into anything AI related after revealing how a handful of the biggest companies, like Microsoft and Amazon, were planning to deploy it.