From Nasdaq: 2024-06-12 12:53:09

The market rally has been driven by the growth of AI, with inflation acting as a counterweight. The Federal Reserve is holding interest rates steady until inflation is under control. Chip companies like Arm Holdings, Nvidia, and Micron Technology are seeing gains due to positive news and economic improvements. Inflation has cooled, with the CPI rising 3.3% year over year and remaining flat month over month, lower than expected. Investors are waiting for signs of improvement before the Fed considers lowering interest rates. Nvidia and Broadcom are receiving bullish sentiment from analysts, driving further gains in the AI space. Businesses are hesitant to invest in AI technology until the economy stabilizes. Micron, Arm Holdings, and Nvidia are selling at high forward earnings multiples, showcasing investor excitement in the AI sector. Nvidia stands out as a favorite due to its previous success in the AI market. Those interested in investing should consider the long-term potential of stocks in the AI sector.



Read more at Nasdaq: Why Nvidia, Arm Holdings, and Other Artificial Intelligence (AI) Stocks Rallied Wednesday Morning