As the AI boom continues, especially after all of the hype after Nvidia's latest earnings, many on Wall Street will continue to double down on the sector and watch closely for any and all updates. But as the technology and use cases behind AI evolve, investors will need to change their perspective on the space too. Yahoo Finance Tech Editor Dan Howley joins Yahoo Finance to discuss why he believes that AI markets should be viewed as two separate categories: Physical hardware and products & services ran by tech companies. For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino
Nvidia is banking on sovereign AI as a means of helping to continue its incredible growth amid the AI boom.
While many on Wall Street are usually very concerned with market events like the Federal Reserve's FOMC meeting minutes, it seems to have been eclipsed by Nvidia's (NVDA) fourth-quarter earnings results which surpassed estimates. Market indices like the S&P 500 (^GSPC) and the Dow (^DJI) are moving higher despite lingering concerns with the Federal Reserve and interest rates. Sanctuary Wealth Chief Investment Strategist Mary Ann Bartels joins Yahoo Finance to give insight into market movements after Nvidia's strong fourth-quarter report and the impact it may have going forward. On whether or not this type of growth is concerning, Bartels explains: "I personally feel the growth that you're seeing justifies the valuations. And what we've actually written is when you're in a secular bull market, which we believe the equity markets went into a secular bull market in 2013, PE multiples expand. Although we all love to buy value and low PEs, once you start that secular bull market, PEs never come down to the level where they started from. So we're actually looking for PE multiples to continue to expand and we think they can actually expand into 2029 and 2030. We think PE valuations on select companies, particularly in technology, are going to go to levels that are really going to shock investors." For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live. Editor's note: This article was written by Nicholas Jacobino