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The Boom Of AI Is Powering The Growth of The Slowing Tech Economy
Last Updated on: November 16th, 2024
As AI has seen a boom in recent times, the excitement of users, fans, investors, and businesses is proving to be a counterforce for the tech economy, which has been slowing. Since the craze for AI is at its all-time high, it has led to the strongest start for tech stocks since 1983.
The excitement of fans and users toward Artificial Intelligence is proving to be a huge boon for tech startups which was slowing in the last few months.
Nasdaq Composite is a stock index that tracks the prices of more than 2500 companies. The index, which is heavily tilted towards tech, saw a 32% rise in the first half of 2023, indicating the best one in the last forty years. The data came out with Bloomberg.
This jump in the index is the best for any half-year period since 1999, as the dot-com boom helped it rise to 73% in the second half of the same year.
The surge of Nasdaq over the last six months is due to the sudden boom of AI, the rise in investments towards AI-based startups, and the higher demand for platforms based on AI. Investment started piling into similar stocks after investors’ interest in ChatGPT became high at the start of the year.
The top three winners at the end of the six months by the data of the index were Nvidia, Tesla, and Meta Platforms. By the end of the first half of 2023, each of these companies incurred triple-digit gains. The ones that are following suit include Apple, Microsoft, Alphabet (Google), and Amazon.
However, there are some analysts that feel this magnificent early run of the Nasdaq Composite will not stay for long, as investors have started taking profits, as there can be a correction of the valuation of AI stocks.
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