Technology shines again in the stock market. From Meta to Nvidia, the majors in the sector are pulling the market in the US until they hit new records. The deployment of artificial intelligence (AI), revenue growth and the opportunities opened by new launches serve as a foundation. For the investor there are still possibilities, there is no bubble and AI is a real revolution, not a fad.
The so-called magnificent seven (Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, Tesla) already weigh a third in the S
After largely improving what the market expected (especially Meta and Amazon) and barring some stock market setbacks (Alphabet, Tesla, Apple), the fear of missing out on the increases – what in English is called FOMO – heats up the prices even more . Corrections may come with acceleration, Del Valle acknowledges, but “if the S
A question hovers over: is there a bubble? The most common response is a denial. You pay dearly, but not overrated. Of course, fewer and fewer firms are having a greater impact: the 2023 rebounds in the indices are diluted without the big tech companies. “I see more sense in the value growth of the digital world, in the real economy is where there may be more risk – due to geopolitics or banking. The great expectation that there was is being fulfilled. There is a certain euphoria, but there is still a long way to go,” adds Luis Garvía, director of the master's degree in Financial Risks at Comillas Icade, to the debate.
“In the medium and long term there are many things to happen. It's not noise, there is value. They are consolidated companies, which generate more and more income and now increase it with licenses. For example, Apple has opened a new market to exploit with its glasses. Mixed or augmented reality used to be just entertainment and today it can replace the computer,” he values. He talks about the possibilities of spatial computing or artificial intelligence. “We are seeing only the first steps associated with a lot of technological processes.”
The transforming factor is key to consolidate sensations. At Activotrade they believe it is necessary for Apple: “We see it as more mature and anchored, it needs a change of vision. “More than 50% of revenue comes from the iPhone.” “Technology has been a key driver of productivity growth over time and will continue to be so,” argues Marius Wennersten of DNB Asset Management. In 2024 he believes the focus will be on robotics, “where the latest advances have been promising.” He also calls to be attentive to the evolution of the types and adoption rates of generative AI. For now there is demand, they achieve much more income than in the dotcom bubble and the strength of the accounts drives a forecast of better results in 2024, they point out in Julius Baer.
