Nvidia-fueled tech rally expected to slow, but AI sector still thriving

From Investing.com: 2024-08-29 16:57:09

The Nvidia-fueled tech rally is expected to slow down due to economic headwinds and chip regulation, causing increased volatility, according to UBS. Despite Nvidia reporting a 122% year-over-year revenue increase to $30 billion, their stock fell 6.4%, hinting at cooling investor enthusiasm. However, the AI sector is still expected to thrive, with big tech companies like Alphabet and Microsoft ramping up capital spending by 43% on AI investments. Walmart’s CEO also highlighted the significance of AI applications across their business, indicating a widespread adoption of AI technology. UBS recommends increasing AI exposure for investors with low holdings and exploring capital preservation strategies for those heavily invested.



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