The bullish sentiment surrounding US large-cap stocks is seeing big tech companies come to the forefront again, with record highs that may lead to a tech boom similar to the dot-com bubble of the late 90s.
Despite caution among investors in competitive Chinese startups and overblown tech stocks, big tech is not going anywhere. The S&P 500 benchmark traded at more than 24 times forward year earnings estimates during the height of the dot-com bubble. Currently, the index is trading at 23 times this year’s numbers and could surpass high levels.
Meta, parent company of Facebook and WhatsApp, is spending billions to surge ahead in the AI race. They are building out data centres needed to develop and power high-end, large language models, and now snatching up top talent and technologies.
“Meta is doing this because they want to win the AI race, period,” according to analyst Mike Proulx “AI is everything right now.”
It’s not just Meta gunning for the winner’s ribbon. Apple is also exploring the acquisition of its own AI company as it seeks to enhance its own AI innovation.
While these mega tech companies seek to dominate AI, Nvidia reached a new record high, with a 4% increase, surpassing its previous high set earlier this year. Despite export bans on the sale of its chips to China, Nvidia has demonstrated significant growth with its new chip contracts in Saudi Arabia and the UAE.
This only goes to show that AI-related big tech companies are far from being put on the shelf. AI is part of everyday life and is the future of computing.
LVMH’s business strategy has aligned with a shift in luxury goods retailers towards conceptual stores to boost sales. Louis Vuitton’s latest store in Shanghai is literally the flagship of its fleet of stores. The conceptual store, shaped like a luxury 30m-high cruise liner, is following the trend that luxury goods shoppers want an immersive experience. The exterior of the new store is designed to look like the side of a cruise ship. The store itself houses an exhibition space and café.
The luxury brand is hoping that the Louis Vuitton experience will attract customers and reignite waning sales in China, which LVMH relies on to boost global growth.
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