The broader market dipped into the red due to concerns the Federal Reserve may not lower interest rates again in December after all. But tech stocks continued to party like it’s 1999. Or, shall we say, like 2025?
Nvidia, which is now worth more than $5 trillion, remained in green after hitting a new intraday all-time high. Also hitting new records? Nvidia chip rivals Advanced Micro Devices and Broadcom, data storage firms Western Digital and Seagate (which reported strong earnings Wednesday morning) and big data darling Palantir Technologies. So was Google and YouTube owner Alphabet, which is set to report its latest results after the close on Wednesday.
The continued strength of tech appears to be a sign that AI optimism is here to stay. And even if the Fed doesn’t lower rates as aggressively as the market had hoped, that’s not going to stop the so-called hyperscalers from spending more and more on AI. Powell himself acknowledged that the AI revolution seems different from the dot-com bubble in the late 1990s and subsequent bursting of it in 2000.
