Technology stocks were under selling pressure in the first half of the week, but enjoyed a rebound after $NVIDIA Corp(NVDA)$ posted earnings handily beat Wall Street's expectations and the leading artificial intelligence semiconductor chip maker forecasted revenue in the current quarter that surpasses analysts' predictions, sending Nvidia's share price to the moon while the semiconductor industry $Semiconductor Bull 3X Shares(SOXL)$ cheered the strong earnings results and positive outlook. Nvidia, whose chips are highly sought and regarded as the gold standard in the AI industry despite their hefty prices, has become the bellwether for the AI market. Hence, its better-than-expected revenue forecasts are signs that the AI demands have more runway to grow. Nvidia took years before joining the $1 trillion club last year at the onset of the AI boom, but within a year it looks set to soon join Microsoft and Apple in the highly exclusive $2 trillion club.
With the growing prevalence of artificial intelligence applications in products and services, demands for semiconductor chips to power the AI engines are expected to continue to exceed supplies. I believe that AI is going to drive the recovery of the semiconductor industry as it emerges from earlier slump, as well as the next phase of growth for the overall technology sector, and technology stocks like $Palantir Technologies Inc.(PLTR)$ and $C3.ai, Inc.(AI)$ have been riding on the prevailing AI frenzy, as businesses rush to build their enterprise-scale AI applications and accelerate digital transformations for their operations.
Despite diminishing hopes of a pivot by the Fed to begin easing the prevailing restrictive monetary policies in March, prospects of higher volumes in bitcoin trading with the launches of a number of spot bitcoin ETFs and the highly anticipated bitcoin halving in the coming April are expected to keep bitcoin price buoyant, with spillover effects on the broader cryptocurrency market and crypto-related stocks, especially $Coinbase Global, Inc.(COIN)$ , the largest cryptocurrency exchange listed in the United States. With rekindled cryptocurrency frenzy helped by rising cryptocurrency prices, I expect Coinbase stock price to maintain its upward projectile.
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