Big tech learns a lesson from Nvidia's rollercoaster ride, says ALEX BRUMMER By Alex Brummer for the Daily Mail Updated: 22:00, 25 June 2024 e-mail 1 View comments The rise of Nvidia to become the world’s most valuable company turned this little understood chip designer and its inspirational founder Jensen Huang into the ‘Swifties’ of tech. Share markets are unforgiving and often irrational places where the herd instinct can get the better of fundamentals. As quickly as Nvidia superseded Microsoft as the top corporation on the globe, so it lost ground this week, jettisoning half-a-billion dollars of value before rallying in latest trading.
A characteristic of the current bull market is how value creation has been concentrated around a small universe of tech stocks, all of which look set to be winners from artificial intelligence (AI). We are at the start of a revolution which will see AI transfer from labs to mobile phones and PCs and every aspect of commerce. Vision: Nvidia founder Jensen Huang (pictured) has ensured the company is at the forefront of the AI revolution The current bull market is better based around solid earnings prospects than the dot.
com boom of a quarter of a century ago. But it is a mistake to think that the tech behemoths are immune to value, political and fashion swings. Apple finds itself under attack in the EU for anti-trust transgressions.
Tesla stock has risen 11,300 per cent since its launch in 2010 but has slipped by nearly 30 per cent this.
