TECH - Nvidia Surpasses Apple On AI Frenzy ECB Cuts Rates | Benzinga
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Nvidia Surpasses Apple
Please click here for an enlarged chart of NVIDIA Corp (NASDAQ: NVDA).
Note the following:
- The chart shows the move up in NVDA stock after earnings.
- The chart shows a second leg up on four pieces of news stoking the AI frenzy and Wall Street front running:
- Nvidia announced its Rubin platform.
- Hewlett Packard Enterprise Co (NYSE: HPE) earnings showed high demand for Nvidia chips. Moreover, HPE’s CEO was skeptical of competitors catching up to Nvidia.
- Elon Musk diverted Nvidia chips from Tesla Inc (NASDAQ: TSLA) to his AI startup. The stock market interpreted Musk’s move as additional demand for Nvidia chips.
- Nvidia was the highlight at a conference in Taiwan.
- Wall Street is front running the upcoming NVDA stock split on hopes of selling NVDA stock at a profit to retail investors who are anticipated to jump in after the stock split.
- Nvidia has now surpassed Apple Inc (NASDAQ: AAPL) in market capitalization. Now there are three companies worth more than $3T: Microsoft Corp (NASDAQ: MSFT), Apple, and Nvidia. The three companies constitute over 20% of the total market cap of the 500 companies in the S&P 500.
- In The Arora Report analysis, the U.S. stock market has never in history been this concentrated in three stocks in only one sector. This is a risk factor that prudent investors need to be aware of. This is an important observation because all three of these stocks are in the Arora Model Portfolio.
- The European Central Bank (ECB) has cut interest rates. Here are the key points:
- The key rate is cut by 25 bps.
- ECB is not precommitted to more rate cuts.
- ECB is raising the inflation forecast for the rest of 2024 and 2025.
- In The Arora Report analysis, the gap between the Fed’s policy and ECB’s policy has widened.
- In The Arora Report analysis, the Fed is not likely to follow the ...