Can Nvidia And The AI Boom Save The U.S. Stock Market And Economy?

Nvidia's rapid rise to a $1 trillion company was a watershed moment for the U.S. stock market. Not only did the U.S. chipmaker report blowout earnings, it also told investors to expect even more and more of those profits to keep rolling in. Nvidia makes the powerful computer chips that help power the generative A.I. boom. If corporate American wants to keep up in the current A.I. arms race, they need chips from Nvidia, and perhaps more importantly, access to Nvidia's growing A.I.-powered data center business. This all sent Nvidia's stock to the stratosphere, boosting the tech-heavy NASDAQ and sending a signal to Wall Street that the A.I. boom is for real. But Nvidia's success comes with a few problems. The stock market's recent rally has come from just a handful of Big Tech stocks, Nvidia included. And with inflation remaining sticky and the labor market showing signs of strain, can the Nvidia-powered A.I. boom save the stock market and wider economy after all?

Chapters:
00:00 — Introduction
01:11 — Nvidia's meteoric rise
02:20 — A.I. and the stock market
04:34 — What's next?

Produced by: Jeff Huang
Edited by: Dennis Donovan
Graphics by: Jason Reginato
Reporting by: Jeff Cox
Narrated by: Jordan Smith
Supervising Producer: Jeff Morganteen

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Can Nvidia And The A.I. Boom Save The U.S. Stock Market And Economy?

[Nernst]

America is currently plagued by the hydra-headed evil duo of inflation and recession. The worst part about this recession is that consumers are racking up credit card debt. In April alone, credit card debt went up 20% while rates have doubled in a year. Inflation is so high that consumers are literally taking debt for basic life necessities. Collapse has indeed begun..

[LivaHolst]

It’s important to choose stocks that are expected to hold uo in inflationary environments. To combat the negative effect of inflation, it’s a good idea to diversify your portfolio across different asset classes, such as stocks, bonds, and real estate, since this can help protect your portfolio against inflation. I have seen People making up to $800k in a month during high inflation

[Redwood]

More quarters and outlooks from big tech names, powered by Nvidia (which has more chips than we thought!), as well as this trader FOMO, may lead to renewed buying strength in markets in September and October. I want to invest more than $300k, but I'm not sure on how to mitigate risk

[stevensmiddlemass]

The FED is aware. They have no firm plans to combat inflation. Stocks and commodities will rise along with everything else as they will continue to inflate. You can't just sit on your cash and wait for a crash; you have to put your money to work, start investing gently, and then pick up the pace as the prices fall further.

[kalfmanbrown]

Roughly £120k in my portfolio are in tech/TSLA stocks, can I get an advice on any other stocks that I can acquire to diversify my reserve across multiple markets while creating a comprehensive portfolio allocation that balances my concerns of risk aversion and returns that meet yearly inflation.

[jacksteven]

Whoever did the "what's next?" segment, deserves a raise or a promotion. Some of the best analysis I've seen as of late.

[williamyejun]

I’m currently retired, and considering the current rollercoaster nature of the stock market, I decided to stay on the sideline for awhile, now I’m worried with the numerous bank failures as of late, am I better off reinvesting my savings in the stock market or do I wait?

[TheresaDiana]

The problem we have is because Most people always taught that " you only need a good job to become rich " . These billionaires are operating on a whole other playbook that many don't even know exists.

[wonhur]

Stocks are pretty unstable at the moment, but if you do the right math, you should be just fine. Bloomberg and other finance media have been recording cases of folks gaining over 250k just in a matter of weeks/couple months, so I think there are a lot of wealth transfer in this downtime if you know where to look.

[kimyoung]

I have a 3 fund portfolio consisting of 33% S&P, 33% Total stock, and 33% international. I feel a need to focus on complete growth so I went 100% stocks, but does the SP500 and TSM overlap too much to make sense holding both? However I’ve been in the red for a month now. I work hard for my money, so investing is making me a nervous sad wreck. I don’t know if I should sell everything, sit and just wait but watching my portfolio of $450k dwindle away is such an eye -sore.

[kkk]

TSLA, NVDA, SMCI, TSM, AMD all are my long term stocks but made me tons of money over this 10years.

AI is the future wether you want to accept it or not. Smart phones will get smarter and smarter, businesses will incorporate AI into their business to save money/ train employees/ etc, .

Invest guys. Money in your bank won’t grow (so minimal it’s basically nothing) .

[falzixhd]

I would have appreciated a part explaining how Nvidia is now a bubble as big as Cisco and Microsoft were in 1999.

[darnellcapriccioso]

Wall Street pitched so-called quality stocks with high profitability and low debt, as a kind of insurance against whatever the economy might throw at you. Quality stocks have underperformed the S&P500 this year, My $400k portfolio is down by approximately 20 %, any recommendations to scale up my ROI before retirement will be highly appreciated.

[aungthuhein]

6:36 "Supposedly, the high tide lifts all boats. This is a very selective tide. And I'm not ready to throw out the confetti." That was hilarious

[XOPOIIIO]

That's just another example of the fact that markets is very inefficient. The great future of AI was obvious ever since 2017-2018. Chat GPT didn't add anything to that prediction, except far more people become aware.

[moomie]

nvidia is one of, if not the most overvalued stock in the S&P

[donalddavis]

Fantastic video Everybody wants to be financially independent and live a better life.With savvy investing, an inexpensive lifestyle, and diligent budgeting, this is not difficult to do. I'm glad I realized early on that achieving financial freedom requires hard work.

[auro]

yes if nvidia spends everything in advertising in cnbc then will there be resources left to make graphics cards?

[MrCloudArchitect]

Good AI platform infrastructure & ecosystem, but too high rather take my chances on PLTR with its AIP

[soup]

Youtube needs to figure out how to get rid of all these bot comments on these type of videos. Absolutely absurd