However, there are concerns about the sustainability of the recent rally, with the Nasdaq 100 showing signs of being overbought, indicating a potential correction risk. Investors are now focusing on Nvidia's upcoming quarterly earnings, with high expectations due to strong demand for its AI computing chips. Despite high valuations, big tech's earnings growth is seen as promising enough to alleviate investors' doubts.
Key takeaways:
- Investors have continued to invest heavily in big tech stocks, fueling a rapid recovery in the Nasdaq 100 Stock Index, which added roughly $2 trillion in market value in three weeks.
- Despite disappointing outlooks from some tech giants, investors are optimistic about the sector's potential, particularly with the growth in demand for artificial intelligence services.
- Microsoft's cloud-computing business has seen a boost from customers using products from OpenAI, pushing the company's stock to a record high and nearing a $3 trillion market value.
- There are concerns about the sustainability of the tech stock rally, with the Nasdaq 100 showing signs of being overbought, indicating a potential risk of correction in the near future.