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On the surface, the meteoric rise of artificial intelligence stocks like Nvidia seems to echo the tech euphoria of the late 1990s dot-com boom. Individual investors have struck it fabulously rich — some turning modest stakes into millions. Experts disagree intensely over whether these soaring valuations are rational or a speculative mania destined to burst. But dig deeper, and today’s AI gold rush may be an entirely new phenomenon that could reshape the economy itself.
The statistics are striking: Nvidia’s market capitalization skyrocketed from $483 billion in January 2023 to over $2 trillion by year’s end — a mind-bending increase of $1.5 trillion in just 12 months. To put that in perspective, the entire growth of the U.S. GDP in 2023 was also around $1.6 trillion.
“People look at those two numbers and think Nvidia went up by $1.6 trillion, US economy went up by $1.6 trillion — Nvidia’s propping up the entire US economy,” remarked Andrei Jikh, a finance YouTuber.
While that theory is economically flawed, it hints at the sheer, distortive impact Nvidia’s ascent is…
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