Source: Zhitong Finance "Since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%)." With the rebound of the stock market, the old adage "Sell in May and Go Away" seems to have been a bad advice once again. Last month, the S&P 500 index rose 4.8%, the best May performance since 2009. The NASDAQ 100 index rose nearly 6.2%, and the NASDAQ Composite Index rose 6.9%. Goldman Sachs FICC & Equities Trading Division said: "History doesn't really support this saying. Don't sell, leave the market (go on vacation), and enjoy the good times." The rising trend is still to be continued? If history is any guide, it may indicate that the rise of the stock market is not over yet. Looking ahead to the rest of 2024, Scott Rubner, Managing Director of the Goldman Sachs Global Markets Division and tactical expert, pointed out the following historical background for investors. Rubner stated that the S&P 500 index has risen 10.7% year-to-date, and since 1950, the S&P 500 index has risen more than 10% 21 times as of the end of May. In about 90% of these cases, the S&P 500 index rose for the rest of the year. There were only two instances of declines for the rest of the year, in 1987 (-13%) and 1986 (-0.1%). "Since 1950, the median return of the last 7 months of each year (June 1 to December 31) is 5.4%. In the aforementioned 21 cases, the average performance of the last 7 months increased to 8.1%." Rubner added. Rubner also pointed out that the NASDAQ index has risen for 16 consecutive Julys, with an average return of about 4.64%.
Knox Ridley, the investment portfolio manager of Tech Insider Network, said on Tuesday that the chip giant will dominate the AI market, just as the iPhone maker ruled the mobile phone industry earlier. On the same day that Ridley made the above remarks, Nvidia surpassed Apple and Microsoft to become the world's largest listed company by market cap. As of the close of trading on Tuesday, Nvidia rose 3.51%, with a market cap of $3.34 trillion. It is worth noting that just over a year ago, the company's market value had not yet reached the $1 trillion threshold, ranking behind technology giants such as Apple and Microsoft. Nvidia replaced the infamous oil trading group Enron to enter the S&P 500 in less than three years. In the following six years, Nvidia did not lead an easy life. In 2008, due to the weakened demand caused by the financial crisis and the rival companies that had been struggling for a long time, Nvidia's stock price collapsed. At the same time, the agreement between Nvidia and Intel allowing the two companies to use each other's features fell apart, forcing Nvidia to withdraw from one of its largest markets. The two companies reached a settlement in 2011, and Intel agreed to pay $1.5 billion to Nvidia.$NVIDIA (NVDA.US)$The weather is good today The weather is good today.$Apple (AAPL.US)$Please use your Futubull account to access the feature.$Microsoft (MSFT.US)$On the same day that Ridley made the above remarks, Nvidia surpassed Apple and Microsoft to become the world's largest listed company by market cap.
Tech Insider Network predicts that Nvidia's market cap will reach $10 trillion by 2030.
Ridley explained in detail why he is bullish on Nvidia. He said that the chip maker has the same advantage as Apple did when it released the iPhone product in the early part of this century. That is, AI technology developers will focus on existing mainstream technologies, just as programmers quickly began to rely on Apple's operating systems.
Ridley said, "The guardians before us are changing." He believes that Nvidia will be at the forefront of the new wave of technology focused on artificial intelligence.
Ridley said, "We're in the early stages of this micro-trend now."
It is understood that in March of this year, Huang Renxun declared that the "AI iPhone moment has arrived," indicating that the AI industry has reached a revolutionary turning point for the smartphone industry, just as the iPhone did when it first appeared.
As of the close of trading on Tuesday, Nvidia rose 3.51%, with a market cap of $3.34 trillion. It is worth noting that just over a year ago, the company's market value had not yet reached the $1 trillion threshold, ranking behind Apple, Microsoft, and other technology giants.$Alphabet-A (GOOGL.US)$, $Amazon (AMZN.US)$Just over a year ago, Nvidia's market value had not yet reached the $1 trillion threshold, ranking behind technology giants such as Apple and Microsoft.
Nvidia's stunning counterattack: from Nasdaq newcomer to market cap king.
Looking back to 1999, Steve Jobs had just resumed control of Apple. Little-known chipmaker Nvidia made its debut on the Nasdaq stock exchange.
Nvidia replaced the infamous oil trading group Enron to enter the S&P 500 in less than three years.$S&P 500 Index (.SPX.US)$N/A.
Nevertheless, few will bet that the company will become the best-performing stock in the past 25 years. Since its initial public offering (IPO), Nvidia's total return, including reinvested dividends, has been 591,078%. It is a shocking number that in some ways proves the financial frenzy surrounding artificial intelligence is brewing, and that investors view Nvidia as the biggest winner in the AI boom.
Nvidia's rise has not been smooth sailing.
From listing to being included in the S&P 500 index, the company's stock price rose more than 1,600%, with a market cap of about $8 billion. At the same time, the dot-com bubble reached its peak in March 2000, and many other tech stocks plummeted after the bubble burst.
Nvidia did not lead an easy life in the following six years. In 2008, due to the weakened demand caused by the financial crisis, the rival companies, which had been struggling for a long time, began to turn the tide, and Nvidia's stock price collapsed.$Advanced Micro Devices (AMD.US)$In the following years, rival companies, which had been struggling for a long time, began to turn the tide, and Nvidia's stock price collapsed.
The agreement between Nvidia and Intel allowing the two companies to use each other's features fell apart, forcing Nvidia to withdraw from one of its largest markets. The two companies reached a settlement in 2011, and Intel agreed to pay $1.5 billion to Nvidia.$Intel (INTC.US)$N/A.
The following year, Nvidia launched graphics chips for data center servers. They can help with complex calculations, such as oil and gas exploration and weather forecasting, and enable Nvidia to establish a foothold in this lucrative market. However, these chips did not immediately sell well. It took almost nine years for Nvidia's stock price to surpass its 2007 high.
In 2015, Nvidia's stock price skyrocketed again. During this period, the company's chips were becoming the basis for emerging technologies, including autonomous cars and artificial intelligence.
Even after the demand from cryptocurrency miners dried up, data center sales continued to grow. From the 2017 fiscal year to the 2021 fiscal year, Nvidia's data center revenue grew eight-fold.
In 2022, Nvidia's stock price plummeted along with other technology stocks, which were in trouble due to rising interest rates and declining demand after the prosperity in the era of COVID-19.
OpenAI released ChatGPT at the end of 2022, which immediately caused a sensation, but investors realized that Nvidia might benefit from it only after a period of time. Eventually, the interest in ChatGPT and other generative AI products skyrocketed, leading to a huge increase in Nvidia chip orders.
"They have a very strong position in the industry," said Rhys Williams, Chief Strategist of Wayve Capital Management. "Obviously, they won't hold 95% market share forever, but it's almost impossible for anyone to replace them."
Editor/tolk