Nvidia led the stock market higher today after the world's most valuable chipmaker announced new desktop graphics processors taking advantage of artificial intelligence. The company's stock climbed 6.4% to end at $522.53, its highest close ever (chart). Nvidia's rally boosted the PHLX Semiconductor index by 3.3%.
Semiconductors and related technology companies are benefitting from the enthusiasm about AI. Is it hype? Could we be in the early stages of a Nasdaq meltup like the one that occurred during the second half of the 1990s? It's certainly possible. I was recently interviewed by a reporter for a major newspaper in Korea. He asked me lots of questions about AI because Korean retail stock investors are very enthused about the prospects for this technology.
