AI revolution leads to stock boom, lessons include investing in leaders like Nvidia.

From NASDAQ.: 2024-06-04 08:40:00

In 2022, the tech bear market hit U.S. equities hard due to inflation highs and a change in the Federal Reserve’s monetary stance. Interest rate hikes led to a steep decline in high-valuation growth stocks, with the Nasdaq 100 ETF losing a third of its value.

The launch of ChatGPT AI chatbot marked a turning point in the tech sector and U.S. equities market, growing rapidly to over 100 million users in weeks. The AI revolution shows no signs of slowing down, offering valuable lessons for investors to learn from history.

Lessons from the AI stock boom include investing in leaders with solid fundamentals like Nvidia, avoiding laggards, and looking for companies providing essential services for the AI sector. Trends tend to persist, valuation is not a reliable timing tool, and moving averages can guide investors on trends for potential gains.



Read more at NASDAQ.: AI Bull Market: 5 Lessons to Learn