The AI explosion could provide a salve for the chip industry's woes.
This doesn't necessarily mean a market meltdown is imminent, but it's important to know what to do -- or, to the point of today's topic, what not to do -- when equities prices are in free fall. Here's a challenge: Find a time when a major stock market index such as the S&P 500, Dow Jones Industrial Average, or Nasdaq-100 fell but didn't eventually recover. It might feel like stocks will never turn around during a market crash, however.
Nvidia (NASDAQ: NVDA) stock has rewarded investors handsomely in 2023 thanks to the hype around artificial intelligence (AI) and the role that the chipmaker is playing in the proliferation of this hot tech trend, as evident from the 80%-plus gains recorded by the semiconductor giant so far this year. Nvidia's hot rally has made the stock prohibitively expensive. Let's look at two reasons why Nvidia stock could still head higher.