The Rise of Nvidia and AI: Wall Street’s Love Affair Unveiled

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Wall Street's Affection for Nvidia and AI

In today's big story, we're looking at Wall Street's love affair with Nvidia (and AI) while Big Tech still grapples with how to use the tools.

Market Insights

Markets: A new committee at Goldman has caused some internal drama.

Tech Innovations

Tech: Reddit aims to ride the AI wave by going public.

Business Updates

Business: Layoffs have helped Wayfair, according to its execs.

But first, it's AI's world, and we're all just living in it.

The Dominance of AI

AI hasn't taken over the world yet, but it's got a stranglehold on the markets.

Nvidia's much-anticipated earnings didn't disappoint. The chipmaker stock skyrocketed, adding the equivalent of Netflix's entire market cap to its valuation in a single day.

Analysts across the Street boosted their price targets for Nvidia, with one suggesting the stock has 80% of potential upside.

The Impact on the Market

Since Nvidia's GPUs sit at the center of the AI revolution, the company's success suggests the hype around the tech is warranted. A rising tide lifts all ships, and Nvidia's earnings beat boosted the entire market.

The S&P 500 finished Thursday up 2.11%, notching another record, while the tech-heavy Nasdaq Composite jumped nearly 3%.

Japan's flagship Nikkei 225 index set a new all-time high for the first time since 1989, thanks largely to chip stocks tied to the AI boom.

It wasn't just Nvidia's numbers that impressed Wall Street, though. CEO Jensen Huang's conviction is also a good sign for the stock, according to analysts.

Challenges in the AI Landscape

The generative AI boom is still young, and a lot remains unknown. Many AI models are still a work in progress, with issues such as bias showing up in AI tools.

One startup is aiming to change bias in AI tools with a detection tool and API. Lawsuits from content owners over the usage of their material pose another threat to big AI companies.

Amazon is warning its employees not to use third-party generative AI tools for work, acknowledging the risks involved.

Market Updates

1. More Goldman drama: A new committee within the firm's investment bank has reportedly left some senior executives up in arms over who's in and who's out.

2. The Fed's challenge: Policymakers still face the tough task of stopping inflation from flaring up without triggering a recession.

3. Jensen Huang's wealth: The Nvidia CEO's personal fortune jumped by $10 billion on Thursday alone, making him the world's 21st-wealthiest person.

Tech Highlights

1. Reddit's IPO plans: The social-media giant is set to list next month and revealed more details about its IPO in a recent SEC filing.

2. Google's Gemini controversy: The company paused Gemini after complaints about the AI model's image generation.

3. Rivian's financial uncertainty: The EV maker's CEO faced questions about the company's financial health after missing earnings expectations.

Business Developments

1. Wayfair's efficiency: CEO Niraj Shah mentioned improved performance after layoffs last year.

2. Vice's pivot: The media company is shifting focus from its website to its studio.

3. Boxabl's challenges: Customers are asking for refunds due to delays and poor communication.

Stay updated with the latest news and insights from Insider Today's team of experts.

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By: ddefrancesco@businessinsider.com (Dan DeFrancesco)
Title: The Rise of Nvidia and AI: Wall Street’s Love Affair Unveiled
Sourced From: www.businessinsider.com/ai-tech-market-nvidia-big-tech-amazon-warning-2024-2
Published Date: Fri, 23 Feb 2024 15:01:03 +0000