Nasdaq 100: AI powers tech rally, potentially the next wave of global growth
Artificial intelligence (AI) was the main motor behind the stellar earnings this week at chipmaker NVIDIA, cementing the idea that AI is beginning to work its magic across many areas.
Today, the Nasdaq goes into the start of trading on Wall Street with all the big beneficiaries of AI leading the charge.
Putting aside some of the darker uses of AI, IGTV’s Jeremy Naylor says AI is an exciting area to follow.
(Video Transcript)
AI powering growth
Artificial Intelligence has been one of the big stock stories this week. I'll cover NVIDIA earnings in just a moment's time, but the background to all this is that AI is now beginning to drive growth in some parts of the world. And indeed, this is what's expected to be the big GDP driver over the next several quarters or so.
And we've seen it recently in new drug discoveries, a really good positive news story coming through where we are able to see AI drive new drugs faster and cheaper. Of course, there are also some downside stories to this such as warfare and so forth. But setting those darker news stories to one side, looking at AI as a good news story is driving the Nasdaq higher.
Nasdaq
Let's take a look at the Nasdaq. First of all, this is the Nasdaq 100 on the IG platform and we are, as we speak, pushing new highs in this from the beginning of the year, this vertical dotted line here when we saw this index tread all the way down at the beginning of the year at 10,600. Here we are now breaking the 14,000 level for the first time that we've seen this since the middle of April last year. So we're at 13-month highs now for the Nasdaq and it's pushing higher as we speak.
NVIDIA
As I said, one of the big stock stories this week has been that of NVIDIA. Now, this is a games chip company, but it has branched out into other areas and artificial intelligence is really the big driver behind this.
You can see that whopping great big candle on the far right hand side of the chart, taking us up to a record high. We breached the previous record high of absolutely smashing at 346 level. 38295 is what we're trading at the moment on the IG platform all-sessions, and you can see a record high for NVIDIA.
AMD
And it's not just NVIDIA that's benefiting from this, Advanced Micro Devices, another chip company that's been doing brisk business on the upside, another all-session stock. And here you can see not too far away from breaching this high that we had back in March 2022 at 12557. So that looks like that could well be broken if we see a continuation of this recent trend.
Microsoft
If you're long on any of these, your stock goes below recent price action. It doesn't stop there either because other companies that have as a periphery part of the business, of course, it's no longer peripheral, but Microsoft has a really big AI part of the business and this is pushing higher as well. And you can see that stock as of yesterday's high point, the highest we've seen there since January 2022.
So tech stocks doing well, artificial intelligence the main driver behind what we're seeing at the moment and some of those individual stock stories powering ahead on the Nasdaq, driving that market now to a 13-month high.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Act on share opportunities today
Go long or short on thousands of international stocks with spread bets and CFDs.
- Get full exposure for a comparatively small deposit
- Trade on spreads from just 0.1%
- Get greater order book visibility with direct market access
See opportunity on a stock?
Try a risk-free trade in your demo account, and see whether you’re on to something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See opportunity on a stock?
Don’t miss your chance – upgrade to a live account to take advantage.
- Trade a huge range of popular stocks
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See opportunity on a stock?
Don’t miss your chance. Log in to take advantage while conditions prevail.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
