For Hot AI Stocks, 'The Music's Playing'—And Shares Are Rising. Can This Continue?
The stock market has reached record highs driven by artificial intelligence (AI) spending and strong earnings growth in Big Tech, with the S&P 500 up 13% since late March. The rally has raised concerns about an AI bubble, with some experts warning of over-confident investors chasing momentum trades.
The stock market has hit record highs, driven by AI spending and strong earnings growth in Big Tech. The S&P 500 is up 13% since late March, and the tech-heavy Nasdaq is trading 18% higher. The PHLX Semiconductor Index has advanced in 18 consecutive sessions, rising nearly 50%. Memory stocks such as Sandisk, Western Digital, Micron, and Seagate Technology are up between 45% and 70% in the last month. Big Tech earnings reports are expected to test the AI-fueled rally, with the four largest hyperscalers set to report earnings this week. Nvidia reclaimed a $5 trillion market capitalization last week, and shares in Nvidia, Alphabet, Amazon, and Meta are all up more than 20% in the past month.
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