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Nvidia stock is the new gold

May 13, 2024 - qz.com
A recent Bloomberg Markets Live Pulse Survey revealed that nearly one-third of respondents are investing in tech stocks, particularly Nvidia, as a hedge against inflation rather than traditional gold. Nvidia, an AI chipmaker, has seen its stock price increase by over 200% in the past year, reaching nearly $900 per share. The company exceeded analysts' earnings expectations in February, reporting $22 billion in Q4 revenues, a nearly 270% increase from the previous year. Nvidia's H100 GPUs have driven the company's success in developing powerful AI models, leading it to become the first chipmaker to reach a $2 trillion valuation.

Despite the growing interest in tech stocks, gold remains the preferred inflation safeguard, with 46% of survey respondents choosing to buy it to hedge against rising prices. Central banks worldwide purchased more gold in 2022 than any year since 1967, coinciding with the Federal Reserve's interest rate hikes to combat inflation. Investors are also turning to big tech stocks like Meta, Microsoft, Alphabet, Amazon, and Apple, in addition to Nvidia.

Key takeaways:

  • Almost one third of respondents in a Bloomberg Markets Live Pulse Survey are turning to tech stocks, particularly Nvidia, as a shield against inflation.
  • Nvidia's stock price has risen more than 200% in the last year, reaching a $2 trillion valuation in February, driven by the success of their highly desired H100 GPUs.
  • Investors are also turning to big tech stocks including Meta, Microsoft, Alphabet, Amazon, and Apple as a hedge against inflation.
  • Despite the shift towards tech stocks, gold remains the most popular inflation safeguard, with 46% of respondents choosing to buy it as a hedge against rising prices.
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