the 3,000 billion club

Artificial intelligence is dominating the pages of newspapers and also the performance of world stock markets, in particular Wall Street, which is making big numbers thanks to some big names in the sector. A company like Nvidiauntil a few years ago it was unknown to most people, except for professionals, but in recent times it has made a lot of talk about itself, surpassing in value the stars of technology such as Microsoft and Apple. But where does this interest come from? And what have been the most surprising stock market performances so far?

The future is played on AI

The artificial intelligence marketaccording to Statista, has grown over 184 billion dollars in 2024, a jump of almost 50 billion compared to 2023, and this staggering growth is expected to continue in the coming years, reaching a value of 826 billion dollars in 2030.

The development of artificial intelligence and its frontier application, generative AIwill radically change the way we live and work, generating opportunities, especially in terms of increased productivity, and risks, linked to ethics and privacy.

Nvidia shines unchallenged on the Nasdaq

The title that has come to light the most in recent times is the chip maker Nvidia, specialized in semiconductors used for artificial intelligence. The US big company announced the launch of in March Blackwella platform dthe new generation which delivers chips that are seven to 30 times faster than the previous generation and consume 25 times less power.

His actions are literally fly to the Nasdaq market, the US technology list, reaching the ceiling of 3 trillion dollars. Then, as often happens on Wall Street, his shares retreated from the highs, only to start off again today with a surge of 3% to $121.9. The titleor has gained 138% year to date and it is definitely the most important performance on the Nasdaq.

Who are the other best performers

Also Microsoft and Google they set out to explore the new Eldorado, a true gold mine, and boast respectively positive performances by 19% and 28% since the beginning of the year.

Other companies are less well knownbut their performances are not of little importance: AeroVironment, which develops autonomous driving in the aerospace sector, recorded a progress of 133%, Procept BioRoboticsactive in the robotics sector, gained 79%.

The 3000 billion club is destined to grow

But do these performances appear justified or does it smell like a bubble? In reality, several analysts believe that the profit growth, no less impressive than stock market prices, can justify the growth in value of these companiesespecially the “3 trillion club”that is, companies that have a capitalization of approximately 3 trillion dollars, currently made up of Microsoft, Apple and Nvidia.

Second Roberto Rossignoli, Head of Research and Senior Portfolio Manager of Moneyfarm“growth in turnover and margins justify, at least in part, the valuations that these stocks achieve, which are stellar when compared with those of any other large cap worldwide, even if lower than the records of the past”.

“To date The three giants alone are worth almost a third of the US GDP and 20% of the S&P 500a concentration which is generally destined to be resolved either with a collapse of the most important names on the list or with an improvement in the performance of the rest of the securities”, explains the analyst, believing that “this second is the most probable hypothesis and therefore , beyond the risk of investing when valuations are not very convenient, there are no additional dangers deriving from the hyper-concentration of the index”.

Looking in perspective, in the next twelve months, for the Magnificent 7 – which include, in addition to Microsoft, Apple and Nvidia Alphabet (Google), Amazon, Meta and Tesla – earnings growth of just under 30% is expected and therefore both Amazon and Meta are potential candidates to exceed the 3000 billion mark of capitalization, both being able to count on resilient business models and important investments in the world of AI.