The recent banking crisis made investors and the Fed talk about halting interest rates, tech stocks may get support from it. As of Mar.27, Nasdaq Index rose 12.44% this year, while Nvidia, Meta and Tesla surged over 50% in 2023.
1. Nvidia Surged 81.55% in 2023 and Once Became the No.5 Company
As of Mar.27, Nvidia’s market cap was 654.25 billion, last week, it once surpassed Buffett’sBerkshire Hathaway and became the No.5 company in the U.S. stock markets.
The positive movement from Nvidia stock can mostly be tied back to one thing: artificial intelligence (AI). The company has benefited greatly from the recent rally of AI stocks, with traders seeing Nvidia as a major player in the space.
For example, Nvidia has been holding its annual GTC conference this week with a major focus on AI developments. If the AI boom can continue, then it seems safe to say that Nvidia stock will keep rising in value.
2. Meta gained 68.56% this year for its increased efficiency
Meta slashed its total expenses forecast for the full year by $3 billion after saying it plans to cut 10,000 more jobs.
Moreover, the company will close around 5,000 open roles that it hasn’t yet hired. The metaverse business also plans to lift hiring and transfer freezes after the restructuring is completed.
Morgan Stanley raised its rating to overweight (price target of $250) from equal-weight. Not only did the company report Q4 revenue exceeding analyst estimates, but it also expects revenue to be between $26B and $28.5B, topping the $27.25B that analysts were expecting.
3. Investor Day and Q1 Delivery Were the Key Catalysts That Helped Tesla Rise 55.72% so Far
CEO Elon Musk said on the company’s fourth-quarter earnings conference call that “demand far exceeds production” and “we currently are seeing orders at almost twice the rate of production.”
Wall Street is expecting the numbers to show about 420,000 units were delivered in 2023’s first quarter, up from about 405,000 in 2022’s fourth quarter.
That implies a growth of about 4% from the prior quarter and about 35% compared with the roughly 310,000 vehicles delivered in the first quarter of 2022.
Before that, Musk showedMaster Plan part 3 on Tesla’sInvestor Day 2023, it aims to establish a sustainable energy economy by developing 240 terrawatt hours (TWH) of energy storage and 30 TWH of renewable power generation, which would require an estimated $10 trillion investment, roughly 10 percent of the global GDP.