What is the reason behind the surge in these stocks? The AI craze is still driving most of the upside pressure in the tech stock market. By the end of the strong May rally, the market cap was heavily influenced by a group of 10 stocks from the S&P 500. These stocks, which include Microsoft, Nvidia, Apple, Amazon, Meta, Alphabet, and Broadcom, collectively accounted for approximately 35.7% of the market cap. Nvidia surged over 5% to reach a new all-time high, solidifying its position among the elite group of companies valued at over $3 trillion. As of yesterday’s close, Nvidia has surpassed Apple in value and is slightly below Microsoft, which sparked the AI rally with OpenAI’s ChatGPT. Apple, on the other hand, saw a modest increase of 0.78% yesterday and is currently very close to its all-time high. It came after the company announced a partnership with OpenAI, hoping that it would provide a much-needed boost to their sales.

With Nvidia surging to new highs, it begs the question of whether this price rally is warranted. It can be challenging to confidently justify everything when observing a price chart that rapidly rises and drives the PE ratio up. What’s genuinely understandable is the strong desire that investors have to be involved in the exciting world of AI. Investors are looking to think beyond just the price and financial metrics and aim for something greater. What is occurring today is undoubtedly the digital equivalent of the Industrial Revolution. The potential for growth is significant, both for the organization and for individuals, and Nvidia is well aware of the increasing demand and remains proactive in pursuing opportunities. Last week, an announcement was made regarding the annual upgrade of AI accelerators. In addition to developing highly efficient AI chips, Nvidia is also expanding its range of software and services. This expansion aims to cater to mid and small-sized companies, enabling them to integrate AI into their business models. It is what sets Nvidia apart from its competitors. Some draw parallels between Nvidia’s strategy and Apple’s closed system, which has proven effective in maintaining the company’s dominance for years. There is speculation that Nvidia is poised to achieve a level of success comparable to Apple. And in terms of market capitalization, it has already increased in value since yesterday.

Regarding the pressing matter at hand: is it too late to make a purchase? We had the same question in mind when the stock price reached $500, $800, and $1000 per share. Now, it has exceeded $1220.

Furthermore, other chipmakers are performing admirably. Qualcomm (NASDAQ:QCOM) experienced a notable increase of over 3% yesterday, while AMD (NASDAQ:AMD) saw a significant jump of nearly 4%. Even the struggling Intel (NASDAQ:INTC) managed to add 2.50% to its value. In Europe, there has been a recent shift in the top positions of the market leaders. The Dutch ASML (AS:ASML) experienced a significant increase of 9.50% yesterday, propelling it to become Europe’s second most valuable company. This achievement was fueled by the news that TSM will be receiving the high-NA extreme ultraviolet machine before the year’s end, solidifying ASML’s position in the market. I inquired with ChatGPT about the matter, as it possesses the expertise to provide an informed response. It offered a comprehensive explanation, highlighting the significance of the introduction of high-NA EUV machines.

Two semiconductor stocks that we are closely monitoring are Arm Holdings plc and Taiwan Semiconductor Manufacturing Company Limited. These stocks are highly recommended for customers seeking affordable options with strong potential for outstanding performance over the next 12 to 36 months. Additionally, we have a strong interest in the Constellation energy stock, which has also shown impressive performance for our clients.

These machines represent a noteworthy technological advancement, facilitating the production of increasingly compact and potent semiconductor devices. These machines are anticipated to have a crucial impact on the upcoming era of chip manufacturing, promoting further progress in electronics and computing. Yesterday, TSM experienced a significant rally, surging 6.85% and reaching a new high.



Nvidia is still a strong buy and will reach $2,400 by late 2025.