AI growth on the horizon?
The stock market is bracing for the next AI boom, with Nvidia, a US chip giant, presenting its latest quarterly figures this evening. Nvidia, a pioneer of the artificial intelligence (AI) boom theme, is considered particularly attractive among AI stocks due to its leading role in GPU technology driving AI advancements.
Investors are eagerly awaiting Nvidia's report and forecasts, as they may indicate whether the AI hype has limits or if reality can surpass the highest expectations. Other promising AI stocks include SoundHound AI Inc and Applovin Corp, while companies like Amazon, Alphabet, and Taiwan Semiconductor Manufacturing are also strong candidates for benefiting from the next AI boom phase.
Meanwhile, the German stock market, represented by the DAX, is showing a mixed performance. The DAX is currently up 0.9 percent and stands at 18,850 points. However, Zalando, one of its constituents, is the DAX's laggard, down 2.3 percent. On the other hand, Covestro stock is currently leading the DAX with a gain of over three percent.
The rise in Covestro's shares is due to hope for an imminent takeover by the Abu Dhabi National Oil Company (Adnoc). A deeper review of Covestro's books is almost complete, which has further fuelled speculation about the potential deal. Interestingly, Covestro's shares have reached their highest level since early 2022, reflecting investor optimism.
In conclusion, the market's fate will not solely depend on Nvidia's weighting in the major indices. The AI boom, however, is expected to have a significant impact on the stock market, with many investors keeping a close eye on Nvidia's performance and the broader AI sector.
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