The American giant Amazon this week reached a market value of two trillion dollars for the first time in its history and became the fifth company to surpass this level, all thanks to optimism around artificial intelligence and the potential reduction of interest rates during this year, which has spurred demand for technology stocks.
American stock indices have recorded strong gains this year, and besides artificial intelligence and monetary policy, this has also been contributed by the resilience of the American economy. On Wall Street, trading was near record levels, mainly due to companies like Amazon and Nvidia. Amazon’s shares have risen over 26 percent this year, and thanks to the acquisition of Anthropica and Figure, it has begun a rapid adoption of artificial intelligence technology. At the end of last year, the company also introduced a new generation of specially designed chips used in data centers, putting it in direct competition with Nvidia, which has found itself at the top of the list of the most valuable companies due to its chips.
Week after week, there is talk and writing about record levels of American stock indices S&P 500 and Nasdaq, all thanks to tech giants like Nvidia, Amazon, and Microsoft, which have thrilled investors over the past six months. This was confirmed to us by a capital market expert.
– The growth of the American stock market this year can largely be attributed to the extraordinary rise of Nvidia’s shares and other tech companies driving the AI revolution. Nvidia, as the main chip manufacturer enabling AI technology, introduced a new chip this year that is 30 times more powerful than the previous one, which spurred further stock growth, and for a short period, it became the most valuable company in the world, surpassing the three trillion dollar mark. This highlighted the faith in the transformative potential of artificial intelligence in the future – said Jure Borovac, fund manager at InterCapital Asset Management for Lider.
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– At the beginning of the year, we had a symbolic event that set the tone for the rest of the year. Microsoft introduced a new key on its keyboards, something we haven’t seen in the past 30 years. Specifically, it is used to launch Microsoft’s ‘Copilot’ AI assistant introduced last year – adds InterCapital’s fund manager.
Another tech giant joined this year, and that is Apple, notes Borovac. At its main annual event held this month, the company introduced ‘Apple Intelligence’. This is AI software that includes integration with OpenAI’s ChatGPT, and its capabilities will be free for all users who choose to use it, he added.
– Amazon has joined the race and has also announced that it is working on the AI chatbot ‘Metis’, which is expected to compete with ChatGPT. Furthermore, since the company is currently the largest provider of cloud services, the goal is to become a platform where clients can meet their needs for tasks requiring AI – claims Borovac, confirming that artificial intelligence has great potential for increasing long-term productivity and changing the way most jobs are currently performed.
– Given that many companies have just begun to apply the new technology, the results will become clear over time. However, what is certain is that a new era in technological development has begun, and we can expect many more news like those we have seen in the first part of this year – concluded Borovac.
