The US technology sector keep running thanks toartificial intelligence. A company like Nvidiauntil a few years ago unknown to most people, except those in the sector, has caused a lot of talk about itself, surpassing in value the stars of technology such as Microsoft And Apple. The latest one reaches the capitalization threshold of 3 thousand dollars.
The future is played on AI
The artificial intelligence market, according to Statista, has grown beyond that 184 billion dollars in 2024a jump of almost 50 billion compared to 2023, and this staggering growth is expected to continue in the coming years, reaching a value of 826 billion dollars in 2030.
The development of artificial intelligence and its frontier application, generative AIwill radically change the way we live and work, generating opportunities, especially in terms of increased productivity, and risks, linked to ethics and privacy.
Nvidia shines unchallenged on the Nasdaq
The title that has come to the fore the most in recent times is chip manufacturer Nvidia, specialized in semiconductors used for artificial intelligence. Its shares literally flew on the Nasdaq market, reaching the ceiling of 3 trillion dollars. A small and temporary retracement didn’t ruin the title’s stellar performance that it has gained 138% since the beginning of the year.
The US big company announced in March the Blackwell launch, a next-generation platform that delivers chips that are seven to 30 times faster than the previous generation and consume 25 times less power. His performance is therefore destined to continue in parallel with the strong growth in turnover and profits.
Who are the other big names in AI
Microsoft and Google have also thrown themselves into exploring the new Eldorado, a true gold mine, and boast respectively positive performances of 19% and 28% since the beginning of the year.
Other companies are perhaps less well known, but their performances are not of little importance: AeroVironmentwhich develops autonomous driving in the aerospace sector, recorded progress of 133%, Procept BioRobotics, active in the robotics sector, gained 79%. The list of AI riders is always longer.
The 3000 billion club is destined to grow
But do these performances appear justified or does it smell like a bubble? In fact several analysts believe that profit growthno less impressive than stock market prices, can justify the growth in value of these companies, in particular the “3 trillion club” formed by Microsoft, Apple and Nvidia.
Second Roberto Rossignoli, Head of Research and Senior Portfolio Manager of Moneyfarm“growth in turnover and margins justify, at least in part, the valuations that these stocks achieve, which are stellar when compared with those of any other large cap in the world, even if lower than the records of the past”.
“To date the three giants are worth, alone, almost a third of the US GDP and 20% of the S&P 500, a concentration which is generally destined to be resolved either with a collapse of the most important names on the list or with an improvement in the performance of the rest of the securities”, explains the analyst, believing that “this second hypothesis is the most probable and that therefore, beyond the risk of investing when valuations are not very convenient, there are no additional dangers deriving from the hyper-concentration of the index”.
Looking ahead, over the next twelve months, for the Magnificent 7 – which include, in addition to Microsoft, Apple and Nvidia Alphabet, Amazon, Half And Tesla – profit growth of just under 30% is expected and therefore both Amazon and Meta are potential candidates to exceed the 3000 billion capitalization markboth being able to count on resilient business models and important investments in the world of AI.
