Nvidia’s success has been a major driver of stock market peaks, according to recent reports by The Wall Street Journal, The Motley Fool, and Business Insider. The company’s record market cap has contributed to the S&P 500 achieving its eighth consecutive record day and 31st of the year. In addition, both the Nasdaq and Dow Jones indexes closed higher than the previous day.
One of the reasons for Nvidia’s success is its investments in Southeast Asia, alongside other tech giants such as Apple, Microsoft, and Amazon. Countries like Malaysia, Vietnam, and Singapore are increasingly appealing for tech investment due to their perceived immunity to US-China tensions and ease of navigating political challenges compared to India. Tech companies are expected to invest $60 billion in the region for data centers in the coming years, thanks to a deep talent pool and support for cross-border investments.
Despite concerns about a dot-com like bubble in the AI market, investment firms like UBS and BlackRock have stated that such fears are unfounded. They argue that the profitability of mega-cap tech companies sets them apart from the unprofitable companies that drove the dot-com bubble. A BlackRock official emphasized that the differences lie in the speed of change, market size, and the stage at which the most valuable company was reached during the AI boom. Analysts continue to remain optimistic about the future of the AI market and companies like Nvidia.
