The stock market’s growing interest in artificial intelligence (AI), fueled by NVIDIA Corp (NASDAQ:NVDA), has set off a race among money managers to identify other companies leveraging the technology.
What Happened: Nvidia’s stock, which has been on a meteoric rise, has surged by approximately 60% this year, following a threefold increase in 2023. This has propelled the company’s market value to nearly $2 trillion, making it the third-largest U.S. company by market cap, after Microsoft Corp (NASDAQ:MSFT) and Apple Inc (NASDAQ:AAPL), Reuters reported.
As a result, Wall Street is now on the lookout for other AI-focused companies, with the consensus being that AI is here to stay. The surge in AI interest has driven the Nasdaq Composite Index to a record high, with the S&P 500 also reaching a new high.
Goldman Sachs analysts have noted a significant increase in AI mentions during conference calls in the fourth quarter, indicating a growing fixation on AI.
A Morgan Stanley survey also ...