Bitcoin BTC/USD skyrocketed past $50,000 this week, propelling its market valuation to an astronomical $1 trillion just a month after the Securities and Exchange Commission approved the first spot Bitcoin exchange-traded fund.
In a similar trend, Nvidia Corp. NVDA, the semiconductor giant riding the artificial intelligence wave, surpassed both Amazon.com Inc. AMZN and Alphabet AMZN, solidifying its position as the third-largest U.S. company, trailing only Apple Inc. AAPL and Microsoft MSFT.
Two inflation reports that exceeded expectations this week prompted investors to reassess the pace of Federal Reserve interest rate cuts, introducing a degree of uncertainty regarding whether the bull market rally has already extended too far. Four out of the five largest U.S. tech companies recorded weekly losses.
AI Sector: The Next Big Thing
The AI sector is undergoing a transformation likened to the internet’s emergence in the 1990s, with an analyst from Wedbush drawing a comparison between Palantir Technologies Inc. PLTR and football star Lionel Messi, and recognizing Nvidia CEO Jensen Huang as the “Godfather of AI.” The analyst forecasts that AI will attract a $1 trillion investment in the next 10 years.
Tesla’s Potential Upswing
According to Gary Black, managing partner at Future Fund, Tesla Inc. TSLA‘s stock might ascend owing to stable pricing and enhanced Full Self-Driving adoption, which could improve auto gross margins and alleviate investor apprehensions about the company’s future profitability.
Magnificent Seven Bubble
The Magnificent Seven U.S. tech giants, including Microsoft, Apple, Alphabet, Amazon, Meta Platforms Inc. META, Nvidia, and Tesla, have experienced a 140% stock gain in the last year, triggering market overheating and bubble concerns, according to Bank of America’s chief market strategist, Michael Hartnett.
Wealth Migration Escalates
Affluent individuals are leaving states with high income taxes like California and New York for tax-favorable states such as Florida and Texas, impacting America’s demographic and economic landscape.
Zuckerberg Praises Quest 3
After testing Apple’s Vision Pro, Meta Platforms CEO Mark Zuckerberg declared Meta’s Quest 3 virtual reality headset superior in overall quality, citing factors like comfort, ergonomics, a wire-free experience, and a vast content library. His comparison aims to dispel assumptions that higher cost equates to better quality.
Read now: Is Warren Buffett Warming Up To Bitcoin? Berkshire Hathaway Profits Big From Crypto Investment
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