Nvidia, Amazon Poised to Rally on AI Boom and Potential Rate Cuts
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The Nasdaq historically surges 19% per year after a bear market rebound, suggesting it could rally again in 2024.
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Nvidia is benefiting from booming demand for its AI and data center chips, with revenue up 206% last quarter. Its growth could accelerate as AI adoption increases.
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Amazon is making major AI investments, including a potential $4 billion deal with Anthropic to boost AWS' enterprise AI platform.
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Both Nvidia and Amazon seem reasonably valued despite strong gains last year, trading at forward P/E ratios of 24 and 38.
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Inflation easing and potential Fed rate cuts set the stage for stronger economic growth, which could fuel more AI investment and power tech giants like Nvidia and Amazon.