Artificial Intelligence (AI) has been the primary driver behind the recent rally in technology stocks.
So far this year, the AI frenzy has helped tech companies grow their value by around $4 trillion, with the US Nasdaq exchange reaching its highest level since last August last week on the back of Nvidia’s sharp rally.
Hardware manufacturers, in particular, have experienced significant growth, with chip-makers such as Nvidia, Advanced Micro Devices (AMD), Taiwan Semiconductor Manufacturing (TSM), and Micron Technology (MU) leading the pack.
Chip-Makers Surge as AI Becomes New Buzzword in Technology
NVIDIA, known for its industrial-grade graphic processing hardware and the creators of CUDA technology, has seen its stock prices surge 166% in just five months amid growing demand for its artificial intelligence chips.
AI fantasy/hype in one chart: Shows how high expectations are for #Nvidia. The stock is valued at ~29 times sales. Measured against that, no stock in Nasdaq 100 is that expensive. Next Wed, chip manufacturer will present figures & outlook. Then we will see whether expectations… pic.twitter.com/cSOfQN22oM
— Holger Zschaepitz (@Schuldensuehner) May 21, 2023
Aside from Nvidia, a number of other rivals that manufacture high-performance computing and graphics solutions have also seen a sharp spike in their stocks.
Advanced Micro Devices (commonly known as AMD), which stands out as the second-most popular choice of GPUs for domestic users, has recorded a 94% rise in share prices from $65 to their current price of $125 so far this year.
Likewise, Taiwan Semiconductor Manufacturing Company (ticker $TSM), the world’s largest dedicated independent semiconductor foundry that produces chips for various companies, has seen its shares increase by 39% since the beginning of the year.
Micron Technology, a global leader in the semiconductor industry, is another winner of the recent AI frenzy, achieving a 47% increase in its shares.
The company manufactures a broad range of memory and storage products, which are crucial components for AI and machine learning systems that require quick and efficient data processing.
Big Tech Stocks Rally as They Shift Focus to AI
Big tech companies, particularly those specializing in generative AI such as Meta, Microsoft, and Alphabet, are also experiencing a surge in share prices.
At current valuations, the tech stock leaders of the unprecedented prior 14-year cycle, who all claim AI as a key driver of their future business model, collectively have much more to lose than to gain in the ultimate reordering. pic.twitter.com/v4M0VOlR5Q
— Kevin C. Smith, CFA (@crescatkevin) May 28, 2023
Meta, formerly known as Facebook, has seen a 116% rise in its shares since the beginning of the year. Meta has shifted its focus towards AI and open-source contributions.
Though it’s important to note that Meta was in a slump previously due to its unsuccessful efforts related to the metaverse.
Earlier this month, the company announced that it has open-sourced its AI tool ImageBind, a multimodal model that understands six different data types.
In early April, Meta also released the Segment Anything Model (SAM), which is capable of identifying objects within images and videos.
Microsoft, well-known for its Windows operating system and the Xbox gaming console, has invested $13 billion in OpenAI, the company behind LLM GPT-4 and ChatGPT.
The incorporation of GPT-4 into its Edge browser and Bing search engine has been a major catalyst for Microsoft’s stock prices, which have risen nearly 40% in 2023.
Similarly, Alphabet, the parent company of Google, is heavily invested in AI, developing Tensor Processing Units (TPUs) and cloud-based AI services, as well as TensorFlow, an open-source AI library.
The creation of Bard and its improved PaLM2 model has positioned the company as a major contender against ChatGPT. The release of LLM models tailored to customers’ needs has generated a positive response among its investors, with shares up 40% so far this year.
- Best Tech Stocks to Buy in May 2023
- Best AI Stocks to Invest in 2023
- Best AI Crypto Tokens & Projects to Invest in 2023
What's the Best Crypto to Buy Now?
- B2C Listed the Top Rated Cryptocurrencies for 2023
- Get Early Access to Presales & Private Sales
- KYC Verified & Audited, Public Teams
- Most Voted for Tokens on CoinSniper
- Upcoming Listings on Exchanges, NFT Drops