Nvidia share in the AI ​​rush: Tom Lee records on a long-term AI upswing

• AI hype stops
• Tech companies increase capital expenditure
• Tech shares drive S&P 500

Since the groundbreaking success of Openais Chatgpt in 2022, the AI ​​industry has experienced a massive investment boost. For example, companies such as Google, Microsoft, Amazon and Meta are currently in the development of their own language models and upgrading their cloud infrastructures.

Investments of billions of billions drive the market

The investments in AI infrastructure have achieved an unprecedented dimension. The four tech giants Meta, Alphabet, Microsoft and Amazon alone increased their capital expenditure in 2024 to $ 230 billion-an increase of $ 60 percent compared to the Street. For 2025, they are probably planning to expenditure of up to $ 325 billion. NVIDIA, as a leading manufacturer of AI chips such as the H100 and H200, benefits from the current hype of AI enormously: the company’s annual turnover of $ 27 billion in 2023 jumped to over $ 130 billion.
Not only Nvidia, but also other tech shares could benefit from this trend. The Technology Select Sector SPDR Fund (XLK) increased by 56 percent in 2023 and in 2024 by another 22 percent. Individual values ​​such as Palantir (+250 percent in one year) and Soundhound AI (+84 percent) also achieved significant price gains. The boom in the technology sector influenced the entire stock market: the S&P 500 would only rose by 11 percent in 2024 without tech values ​​instead of 24 percent.

Does the AI ​​investment cool down?

Despite the unprecedented growth, however, there are now increasing the fact that the tech boom could face a correction. The share prices from Nvidia and Palantir have already fallen from their youngest highs. Another reason for a possible uncertainty is likely to be the Chinese AI model Deepseek, which was probably developed with a comparatively low cost of only six million US dollars. If it turns out that AI development can be much cheaper than previously assumed, this could question the huge IT budgets of western companies.

There are also economic risks: increasing inflation, declining consumer confidence and a tighter Monetary policy Could force companies to rethink their growth strategy and rely more on cost control.

Long-term perspectives for AI investors

Despite the uncertainties, many experts continue to believe in the positive long-term development of the AI ​​sector. Wall Street veteran Tom Lee sees no great danger for AI investments and assumes that the market will remain robust in the long term: “I don’t think the expenses for AI will really go back,” he told CNBC. “The visibility of the expenses for AI remains high. Many good news are ‘priced’, but that does not mean that they have reached their climax. In the long term, positive thesis intact,” he wrote in this context.

The Visibility for #Ai Spending Remains High.

– But ai Stocks have consolidated $ Nvda $ Pltr $ Smci $ AMD
– as a lot of good news ‘priced in’ But this does not mean they have toped

Long-term positive thesis intact@fs_insight @Fundstratcap $ Grny https://t.co/wadvfqpnx0

– Thomas (Tom) Lee (not drummer) fsinsight.com (@fundstrat) March 3, 2025

Whether the AI ​​boom continues or a market adjustment is imminent will be shown in the coming months. But one thing is certain: artificial intelligence remains a key topic of the technology industry and should also put investments in the near future.

Editor finance.net

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