Nvidia shares have reached a new all-time high, increasing by 4% compared to the previous day. This comes amid overall stock market growth, which showed rather modest results.
Nvidia Achieves Historical High
On Wednesday, Nvidia shares closed up 4%, reaching a new all-time high. This followed positive momentum since the earnings report released on May 28, where the company exceeded analyst forecasts. Since the report, Nvidia shares have jumped over 12%, while the S&P 500 gained only 3.6% during the same period. Investor confidence is strong, bolstered by the company's dominance in the AI chip market.
General Market Dynamics
Overall, the market hovered near record highs, with the S&P 500 up just 0.08%, remaining less than 1% from its February peak. The situation improved after a ceasefire between Iran and Israel eased some global tensions and alleviated concerns regarding oil supply disruptions. The S&P 500 has increased more than 2% this week as a result of these developments.
Tech Sector Remains Cautious
Despite Nvidia's rise, the broader tech sector is not sharing in the same optimism. Worth Charting’s CEO noted that the current rally is driven by only a few big names, while most other tech stocks are seeing declines. Only 5 out of 69 tech stocks have gained since mid-February, with the median stock down 5.5%. Even though the tech sector has risen 5.7% this year, it faces pressures stemming from housing market dynamics and overall economic indicators.
Nvidia continues to shine amid overall market gains, yet signs of tension persist within other sectors. Investors retain hopes for further development thanks to Nvidia's dominance in the AI chip field.
