New York stocks moved higher on Tuesday, with significant gains coming from tech stocks riding the artificial intelligence (AI) wave. The tech-heavy Nasdaq Composite Index rose by over 3%.
While the stock market at large has largely been hampered by waning investor optimism, an increasing volume of investors has been pouring funds into tech stocks involved in artificial intelligence. These stocks, nicknamed the “Magnificent Seven” by Bank of America strategist Michael Hartnett, are Apple, Google parent company Alphabet, Amazon, Meta, Microsoft, Nvidia, and Tesla.
These top seven Nasdaq 100 stocks have gained $3.35 trillion so far this year, accounting for 84% of the index’s $4 trillion growth in market valuation over the course of 2023. Both Apple and Microsoft alone have gained more than all of the bottom 93 stocks in the index combined.
Several smaller AI-focused companies have made significant gains, with chipmaker Marvell Tech skyrocketing by 30% on Friday, thereby resulting in a 65% gain this month. Marvell expects its AI revenue to double in 2024. Cloud-based security companies Zscaler and American Micro Devices also made notable gains this month of 45% and 42% respectively.
