The stock markets in New York and Mexico will have had a good first half of 2023.
But nothing compared to the momentum of the Nasdaq-100, which has practically signed its best first half in 40 years, something unusual that is explained on this occasion by the rise of Artificial Intelligence, a factor that has prompted a handful of broadcasters to register important profits.
The Nasdaq Index, where the main high-cap technology issuers in the market are listed, closed the first half of the year with a 32% gain, its best result since 1983, when it gained just over 30%.
The market is undoubtedly boosted by a handful of broadcasters that have themselves benefited greatly from the rise of Artificial Intelligence (AI).
What was the world like in 1983?
40 years ago, when the Nasdaq gained just over 30 percent in the first half of the year, the world was different, it was totally different. Undoubtedly for current generations it would be a strange world, and it is worth saying that there are generations that have never seen a semi-annual profit of such magnitude in the market.
Today the markets and the planet are different, four decades ago the technology industry was very different. To begin with, almost all the stations that are listed today did not exist, the technological development achieved was even unthinkable: mobile phones, social networks, microchips, instant communication by video and voice, electric cars, computers, the cloud, the internet, and a long etcetera. None of this existed then
It’s been 40 years since the Nasdaq didn’t have such spectacular semi-annual gains, and the cause of it all is what is already considered one of the great revolutions in history: the arrival of AI.
The leading actions
As we pointed out before, this AI and technology market momentum is driven by a handful of issuers that are or will be benefited by AI, as we know one of the essential characteristics of stock markets is their discount factor, what happens today is nothing more than that same mechanismshareholders discount the benefits that this new technology will bring to some stations.
In this context, the balance of this handful of actions says it all: for example, the shares of Nvidia Corp almost tripled in the year with a return of 179.14 percent, followed by Meta Platforms that earns 133.94 percent. Tesla Inc., with an advance of 109.05 percent, Advanced Micro Devices Inc (AMD) with a gain of 71.74 percent, while Palo Alto Networks Inc (PANW) rises 81.54 percent and Marvell Technology Inc (MRVL), a rebound of 57.58 percent. Some more have rebounded between 40 and 60 percent, a not insignificant gain, although overshadowed by the rebound of the aforementioned.
The historic upturn
According to analysts, since 1986the average return of the Nasdaq 100 in the first half of the year has been approximately 9.27 percent, so the current results are 3.22 times higher. Historically, only three half-years have outperformed 2023 returns on the Nasdaq 100 (1998, 1995, 1983, respectively).
The behavior of the Nasdaq 100 companies shows a high dispersion: both strong winners and significant losers. Semiconductor and technology companies dominate the winners list, while the healthcare, energy and consumer goods sectors top the losers list.
What is a fact is that the AI boom propelled the market in the first half of the year and led it to record the biggest rise in 4 decades, The rebound was of such magnitude that even the poor results of other broadcasters and the modest profits of some more, they did not shine before the profits of the stations linked to the AI, the revolution of the twenties of this century.
MORE NEWS: