The global market saw an increase in Nvidia’s share price by 2.6% on the Friday ahead of Memorial Day, marking a 15% rise over the week.
Other technology stocks noted positive upticks, pushing the tech sector upwards. Despite fluctuations, Nvidia’s steady rise showcases investor confidence, backed by the company’s strong performance in the fields of Artificial Intelligence, data centers, and autonomous vehicles.
2021 has brought market volatility due to geopolitical tensions and Covid-19 concerns. Tech stocks like Nvidia’s resilience, however, suggest a positive prognosis and may indicate the start of a steady recovery phase.
Major indexes such as Nasdaq saw the most significant weekly growth with a 1.41% rise. Despite minor gains on Friday, the Dow Jones Industrial Average reported its first weekly loss in five weeks.
Nvidia’s share surge signals tech recovery
The S&P 500 also had a good week, with a growth of 0.82% logged.
The significant rise in Nasdaq’s growth is credited to the outstanding performance of technology and biotechnology stocks, coupled with investor optimism over the vaccine rollout. On the other hand, Dow Jones, more exposed to companies prone to cyclical economic shifts, fell slightly by 0.29%.
The S&P 500 noted a weekly increase of 0.7%, contributing to an overall 0.03% increase. The treasury yields changed little, while oil prices rallied from a three-month low.
Nvidia’s CEO, Jensen Huang, saw his wealth increase to over $90 billion due to positive forecasts on the company’s financial strength and strategic decisions that took the company’s shares higher. This rise in Nvidia’s shares is mainly linked to Huang’s leadership and strategic foresight.
Glass Lewis, a proxy advisory firm, has called on shareholders to reject a recommended remuneration plan for a CEO of another leading tech firm, citing potential share dilution, the size of the package, and the CEO’s involvement in multiple demanding projects.
Google faced criticism for providing incorrect or debated responses in its AI Overview function in its search engine. However, Google continues to back its technology and its commitment to the continuous evolution of its algorithms. Despite the controversy, Google is determined to refine the function and deploy more efficient methods such as increased human review to guarantee accurate and reliable results.
