Even before Nvidia
NVDA,
jolted investors by predicting a 50% sequential increase in quarterly sales, shares of the largest technology companies had been roaring back following a dismal 2022.
Here’s a quick summary of the action this year through May 25 of total returns with dividends reinvested for the five largest companies in the S&P 500
SPX,
by market capitalization plus Facebook holding company Meta Platforms
META,
followed by the same information for four market indexes:
| Index or company | 2023 total return | 2022 total return | Return since the end of 2021 | Return on May 25 |
|
Apple Inc. AAPL, |
34% | -26% | -2% | 1% |
|
Microsoft Corp. MSFT, |
37% | -28% | -2% | 4% |
|
Amazon.com Inc. AMZN, |
37% | -50% | -31% | -1% |
|
Nvidia Corp. NVDA, |
160% | -50% | 29% | 24% |
|
Alphabet Inc. Class A GOOGL, |
40% | -39% | -15% | 2% |
|
Meta Platforms Inc. META, |
110% | -64% | -25% | 1% |
|
S&P 500 SPX, |
8% | -19% | -13% | 1% |
|
S&P 500 Information Technology SP500.45, |
30% | -29% | -7% | 4% |
|
Nasdaq Composite Index COMP, |
21% | -33% | -19% | 2% |
|
Nasdaq-100 Index NDX, |
27% | -33% | -15% | 2% |
| Source: FactSet | ||||
Click on the tickers for more about each company, index or sector.
Click here for Tomi Kilgore’s detailed guide to the wealth of information available for free on the MarketWatch quote page.
The far right-hand column shows performance on May 25, when Nvidia shares shot up 24%.
All six stocks have soared this year, but only Nvidia has made up for last year’s brutal decline for the tech sector, as rising interest rates have pushed the broad stock market down. Even with a 37% gain in 2023, Amazon.com’s
AMZN,
shares are down 31% since the end of 2021.
Nvidia CEO Jensen Huang said his lofty revenue expectations were tied to the company’s “killer app,” by which he meant graphics processing units used in data centers that support companies deploying artificial intelligence to enhance their products and services.
In an interview with Therese Poletti, Nvidia CFO Collette Kress further backed Nvidia’s sales target.
Here is a sampling of coverage of Nvidia’s blowout guidance and related topics:
- The Ratings Game: ‘Unprecedented’ and ‘unfathomable’: Nvidia makes jaws drop on Wall Street as stock explodes higher.
- Nvidia barrels toward rare $1 trillion valuation after putting a dollar figure on AI boost
Which other companies might be important players in the AI race?
Analysts at JPMorgan underscored how important AI is to Nvidia when they compiled a list of expected percentages of revenue to be derived from the new technology for dozens of companies.
Barbara Kollmeyer interviewed money managers at GP Bullhound Asset Management who named companies with a lot of money to spend that will not risk being left behind as AI is deployed across industries.
Here is a discussion with money managers at Buffalo Funds and Pacer ETFs about how exposed investors already are to the largest AI-related companies, and other ways to play this trend.
More AI angles for investors:
- This Alphabet bull is feeling more upbeat about Google’s story
- Microsoft’s Nadella: AI is taking the computer age from ‘the bicycle to the steam engine’
Are we already looking at a bubble for AI-related stocks?
If you jump aboard the AI bandwagon now, are you already late to the party? In Friday’s Need to Know column, Jamie Chisolm looks at the stock action so far and surveys analysts’ opinions.
Related coverage:
- AI-themed ETFs jump as Nvidia surges
- The Ratings Game: Why Intel’s stock is falling as Nvidia leads the rest of the semiconductor sector on a massive surge
How will AI affect the workforce?
Leaving corporate profits and the stock market aside, an important question as AI promises to improve efficiency in various industries is how it will affect peoples’ jobs and overall employment levels. William Watts looks at the long relationship between joblessness and the deployment of groundbreaking technology.
And Jone Swartz interviews a television writer and producer to discuss how AI will change the entertainment industry.
Retailers report, and the word is …
“Mixed.” As retail earnings season neared its end this week, there were some positive surprises for companies such as Kohl’s
KSS,
and Abercrombie & Fitch, but other retailers see evidence that consumers are putting off clothing purchases, as Ciara Linnane reports.
Hibbett CEO Mike Longo went so far as to cite “concerns over outright job loss” as the sports retailer lowered its guidance for investors.
More on retail and the health of consumers:
- Inflation in goods from cereal to soup has given a boost to consumer-food stocks. Can Walmart help bring prices, for both food and stocks, down?
- Organized retail crime is definitely a thing, says BJ’s CEO: ‘We see it, and it is material’.
Why you had better have some of your money in index funds
Mark Hulbert shares the results of a long-term study of 64,000 stocks and explains why index funds are so important for a long-term growth strategy.
Related: Stocks returned 8% over the last decade, adjusted for inflation. Vanguard isn’t that optimistic about the next 10 years.
How to appeal if a Medicare decision goes against you
Beth Pinsker had to appeal to Medicare — twice — not to discharge her mother from a skilled-nursing facility before she had sufficiently recovered from an injury. Here’s how she made successful appeals, plus more details about what Medicare covers.
The appeal of Japan’s stock market
Following decades of underperformance, Japan’s stock market has come to the attention of many U.S. investors, including Warren Buffett, who has discussed Berkshire Hathaway’s increased holdings in five Japanese trading companies.
In this week’s ETF Wrap, Isabel Wang looks at the money flows into Japan’s stock market and highlights risks investors should be thinking about.
Read on:
- Japanese stocks are at a 33-year high. Buffett is buying in. But the rally may be just a function of a weak yen, one analyst says.
- You can’t rely on indexes to pick international stocks, this 5-star fund manager says. Here are 3 of his top selections.
Housing
Aarthi Swaminathan explains how one city has become “a landlord’s market.”
A “pretty simple fix” for people who want to move: Bipartisan bill would double capital-gains exclusion for home sellers
Who’s doing a good job saving for retirement?
Lumping people into generational groups may not always be useful, but it is appropriate when assessing retirement-savings trends. It turns out that Americans in Generation Z, who are in their early 20s or younger, have been doing a good job contributing to retirement accounts, according to Fidelity.
Then again, there are some concerns about Generation Z’s investment preferences.
Read on: Will Social Security exist for millennials and Gen Z?
An alleged cannabis Ponzi scheme
Lukas I. Alpert writes the Financial Crime column. This week he describes how WeedGenics has been accused by the Securities and Exchange Commission of raising $60 million from investors and spending it on … this stuff.
More: House-flipping influencer and life coach hit with hefty fines in bogus $400 million training program
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