Article Hero

AI at the Forefront of Ramping Up Share Prices of Tech Companies

Miguel A. Rodriguez
Miguel A. Rodriguez
26 May 2023

Nvidia Corporation’s shares reached a record high yesterday after the company surprised the market with higher-than-expected quarterly revenue. Microsoft Corporation and Alphabet Inc. also followed the same pattern.  

Yesterday, the stock indices partially regained the ground they had previously lost after the markets temporarily put aside their concern about a possible US government default. 

The tech-heavy Nasdaq gained more than 1%, partly due to rising shares of Nvidia Corporation after the company disclosed earnings that were far beyond expectations, which also helped other AI-related companies. 

The Nvidia Corporation, the most valuable listed chip firm in the world, posted a quarterly revenue that was 50% higher than forecasts and announced it was ramping up production to satisfy demand for its artificial intelligence. The company's shares rose by 25% as a result, reaching an all-time high. 

Related Article: Invest in Metaverse

Microsoft Corporation and Alphabet Inc., two other AI-related businesses, saw their shares rise by about 3.7% and 2.0%, respectively. 

The US GDP figure for the first quarter was released yesterday, showing 1.3% growth, slightly higher than expected. This figure demonstrates the US economy's resilience in the face of all the challenges it has faced, including rising interest rates, inflation, and most recently the regional bank crisis. Additionally, fewer unemployment claims were filed than anticipated, demonstrating the continued strength of the labor market. The major inflation number and the Federal Reserve's favored measure, Personal Consumption Expenditure, will be made public today. 

These economic figures caused the bond yields, which have been increasing steadily for days, to increase somewhat, with the 10-year bond moving up to around 3.80%. 

Related Article: CAPEX.com platform

However, in real terms, the sale of treasury bonds due to concerns about a US government default is what is mostly to blame for these spikes in market interest rates. 

As a result, the debt ceiling talks keep attracting a great deal of market attention. On Thursday, US President Joe Biden and top Republican congressman Kevin McCarthy were just $70 billion apart in a deal that would encompass billions of dollars, according to several of the participants in the negotiations.   

In exchange for caps on government spending, the agreement proposes to raise the debt ceiling to $31.4 trillion. 

DMO 26.05.2023 graph.png

Sources: Bloomberg, Reuters 

This information prepared by capex.com/za is not an offer or a solicitation for the purpose of purchase or sale of any financial products referred to herein or to enter into any legal relations, nor an advice or a recommendation with respect to such financial products.This information is prepared for general circulation. It does not regard to the specific investment objectives, financial situation, or the particular needs of any recipient.You should independently evaluate each financial product and consider the suitability of such a financial product, by taking into account your specific investment objectives, financial situation, or particular needs, and by consulting an independent financial adviser as needed, before dealing in any financial products mentioned in this document.This information may not be published, circulated, reproduced, or distributed in whole or in part to any other person without the Company’s prior written consent.
Past performance is not always indicative of likely or future performance. Any views or opinions presented are solely those of the author and do not necessarily represent those of capex.com/zaJME Financial Services (Pty) Ltd trading as CAPEX.COM/ZA acts as intermediary between the investor and Magnasale Trading Ltd, the counterparty to the contract for difference purchased by the Investor via CAPEX.COM/ZA, authorised & regulated by the Cyprus Securities and Exchange Commission with license number 264/15.  Magnasale Trading Ltd is the principal to the CFD purchased by investors.

Share this article

How did you find this article?

Awful
Ok
Great
Awesome

Read More

Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.