Is the AI frenzy far from over? Which Concept Stocks Are Reaching New Highs?
There has been a chart circulating online comparing the stock trends of Cisco vs. Nvidia. The sharp decline in $NVIDIA Corp(NVDA)$
However, there has been a new twist in this chart. On April 30th, a pivot occurred with Microsoft's earnings; Nvidia also continued its upward trend when it announced a series of contracts from the Middle East.
The quarterly earnings released by Microsoft sends a clear message: the AI juggernaut rolls on, at least for now. Since the earnings release, Microsoft's stock price has soared over 17%. This news has been comforting to the entire AI sector, proving that companies are not disappointed in this highly hyped technology. Microsoft's strong performance has also led the market to infer an increased demand for Nvidia chips.
Additionally, with Trump and bin Salman endorsing the US-Saudi AI deal, Nvidia said it will sell hundreds of thousands of AI chips in Saudi Arabia, with a first tranche of 18,000 of its newest "Blackwell" chips going to Humain, an AI startup just launched by Saudi Arabia's sovereign wealth fund. Nvidia's stock price has recovered from its sharp decline at the beginning of the year.
Is the AI frenzy far from over?
Recent trends in AI concept stocks indicate that the AI "stock market fuel" is far from running out. On Monday, $Applied Digital (APLD.US)$ announced a transformative $7 billion, 15-year AI data center lease agreement with $CoreWeave (CRWV.US)$, a leading AI hyperscaler. Applied Digital saw its stock price skyrocket by 48.46%, closing at $10.14. Meanwhile, CoreWeave's stock has more than doubled since the start of the year.
$Tempus AI (TEM.US)$, a "precision medicine" company that leverages artificial intelligence to better treat patients, Shares soared 15% on Monday. Late Friday, the company announced an initiative it calls Fuses, a program designed to transform therapeutic research and build the largest diagnostic platform using its novel foundation model. Since the beginning of the year, Tempus AI's stock has surged by 88%, while the telehealth firms $Hims & Hers Health (HIMS.US)$ has skyrocketed nearly 135%.
$Palantir (PLTR.US)$'s stock price has also continued to reach new highs, rising 74% since the beginning of the year.
Furthermore, $Broadcom (AVGO.US)$ will release its second-quarter financial report after the market closes on June 5th. Wall Street expects the chipmaker to report growing revenue and profits fueled by demand for AI chips. Broadcom may soon become the first big tech stock to break historical highs. Its current stock price is $248.71, just under 1% lower than the peak of $250.45 in December last year.
@TigerStars @CaptainTiger @TigerWire @Daily_Discussion @Tiger_chat @Tiger_comments @MillionaireTiger
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
