This week saw record highs in the Nasdaq and the S&P 500 over growing optimism about trade deals. Japan and the US negotiated a 15% tariff down from 27.5% and the US/EU negotiations are predicted to settle at the same rate as Japan at 15%. This optimism saw markets reaching new highs as investors took an optimistically cautious sigh of relief.
The record highs of the Big Twin indexes (S&P500 at 8% and Nasdaq at 9% year to date) are largely due to ‘Big Tech’ reporting favourable results as the demand for AI innovation and services booms.
Google’s parent company, Alphabet, beat expectations with just under $80 billion in revenue. Nvidia cemented itself as the largest company in the world with a market cap of over $4 trillion. GE Vernova surged 14.6% to an all-time high, with over 80% gains this year, as the demand for electricity surges due to the growth of AI and cryptocurrency data centres.
TSM (Taiwan Semiconductor Manufacturing Company) joined the trillion-dollar club, with a 61% leap in profits, as quarterly revenue surpassed £30 billion. Most major AI-related industries, from Apple and AMD to Broadcom to Nvidia, rely on TSM’s powerful advanced microchip technology.
Despite geopolitical factors at play, the world continues to demand a greater supply of AI-related products and services, and industries linked to this demand could do extremely well.
Aeye (LIDR) shares skyrocketed after news of a significant collaboration with Nvidia. The self-driving car innovator’s flagship Apollo lidar has been fully integrated by Nvidia into its DRIVE AGX platform, an integral part of its autonomous vehicle ecosystem.
This collaboration could prove pivotal for LIDR shares as it will position the company in a highly competitive lidar market. This could create massive commercial opportunities as Nvidia’s platform spans global automakers
Nvidia’s confidence in the company could accelerate revenue and improve its market position in the long-term autonomous tech field.
Please note, the above is for educational purposes only and does not constitute advice. You should always contact your adviser for a personal consultation.
* No liability can be accepted for any actions taken or refrained from being taken, as a result of reading the above.