AI-focused firms see big jump in Market cap in June
US stocks
AI-driven tech rally continues its dream run in June. The month witnessed Nvidia briefly overtaking Microsoft to become the most valuable company in the world. Nvidia's shares surged 27 per cent in June, boosting its market value to over $3.3 trillion. It was, however, followed by a $430 billion slump.
Microsoft's market value increased by 7.6 per cent, while that of Apple surged 9.6 per cent over the past month. Amazon recently became the fifth company to cross the $2 trillion mark. All these big tech firms are riding high on the AI boom.
Investors are betting on AI as the future of work, and this has got all the big tech firms working overtime. Countries are ready to escalate trade tensions as they look to protect their AI technologies. This highlights the geopolitical importance of winning in the AI race.
Broadcom's market value also jumped 20 per cent in June after increasing its annual revenue forecast for AI-related chips by 10 per cent. 7 out of 10 top companies in the world are tech-related. Global stocks have also hit record highs amid the AI rally.
Despite the flight, analysts are looking at potential gaps. Some point to the fact that only the top AI firms are winning, while competition in the mid-range is heating up. This is leading to uneven growth and winning for a few big tech firms. However, analysts at Morgan Stanley point to the exponential growth observed within the top 500 stocks.