Nasdaq Soars in 2023 as Nvidia and Amazon Ride AI Wave
• The Nasdaq Composite index surged 43% in 2023 amid easing inflation and economic challenges. Historically, the index rises 19% per year after a bear market rebound.
• Nvidia's sales and stock price soared in 2023 due to strong demand for its data center chips used in large language models and AI chatbots. Its growth could accelerate as AI adoption increases.
• Amazon is integrating AI across its operations, especially Amazon Web Services, to help enterprises create and scale AI apps. A $4 billion investment in AI start-up Anthropic signals AWS' key role.
• Nvidia trades at a forward P/E of 24, while Amazon has a higher but seemingly reasonable forward P/E of 38 given its diversification and history of success.
• With inflation easing and the Fed expected to cut interest rates in 2024, AI start-ups using solutions from Nvidia and Amazon could thrive, benefiting both tech giants.