From Nasdaq:

The Nasdaq reached a record high close for the first time in over two years, driven by optimism about artificial intelligence and tech stocks like Nvidia. The index advanced 144.18 points to 16,091.92, surpassing its previous record. Nvidia has become the most traded company, fueling the AI frenzy on Wall Street. The tech-heavy index’s rally began after a December low. Amid Federal Reserve rate cut expectations, the Nasdaq and S&P 500 are up around 7% in 2024.

Nvidia has seen a 60% surge in 2024 and now ranks as the third most valuable company on Wall Street with a market cap of $1.94 trillion. Microsoft also gained 10% in valuation, surpassing Apple to become the world’s most valuable company. Tech giants like Nvidia and Microsoft have benefitted from the AI rally, with Nvidia’s stock rising 1.9% on Thursday after a strong revenue forecast. The Nasdaq’s recovery has also been driven by the optimism around AI tech and Federal Reserve actions.

The Nasdaq’s recent recovery can be attributed to growing investor confidence in the AI sector, especially in companies like Nvidia. Tech stocks have rebounded from their previous lows, with the Nasdaq’s rally surpassing expectations set just a year ago. The anticipation of an AI boom has supported these stocks, even at extended valuations. To sustain this growth, however, companies will need to show revenue growth directly tied to AI technologies.



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