The Nasdaq Composite is trading at record highs

The Nasdaq Composite, which is a key stock market index, contains more than 3,000 stocks traded on the Nasdaq (National Association of Securities Dealers Automated Quotations) exchange. Together with the Dow Jones Industrial Average and the S&P 500, it is one of the three most important and most followed stock indices in the USA. Thanks to companies such as Microsoft, Apple and Nvidia and the enthusiasm around artificial intelligence, it has been at all-time highs in recent days. As of Monday, June 17, 2024, it stood at 17,935.99 points, an increase of 21 percent since the beginning of the year.* Over the past 5 years, it has performed 122.33 percent. Although it has seen a slight correction from its highs in recent days, it was still below $17,690 on June 24, 2024. *

The evolution of the value of the Nasdaq Composite Index over the last 5 years. (Source: Google Finance) *

Microsoft to offer AI services for businesses

As part of the historic growth of the Nasdaq Composite, a battle is underway between the three aforementioned tech giants Microsoft, Apple and Nvidia for the title of number one with a market capitalization of $4 trillion. Software company Microsoft has emerged as a major player in the field of artificial intelligence, helped by its collaboration with ChatGPT's creator, OpenAI. Its current plans involve further development in this sector with a new service, Copilot, to help entrepreneurs use AI in practice. Microsoft's market capitalisation reached $3.34 trillion as of 24 June 2024.

Apple with new system and global training

Although Apple has recently been rumored to be lagging behind in AI, at WWDC 2024, the company unveiled a new Apple Intelligence system exclusively for the iPhone 15 Pro, iPads, and M-series Macs. This system offers AI-powered features such as typing tools, Genmoji, and Siri enhancements. The company is also taking steps with preparing its employees to work with advanced technologies, with all Apple Developer Academy students and graduates being trained with AI tools. This strategy is being rolled out in several countries like Brazil, Indonesia, Italy, Saudi Arabia, South Korea and the US. Apple's market capitalization as of June 24, 2024 stood at $3.18 trillion.

Nvidia with influence on autonomous technology

According to Wedbush analysts, Nvidia is currently dominating the AI space with optimized chips, referred to as the "new gold" in the tech sector. The company hasn't slacked off on advancements and innovations. At the CVPR 2024 conference, it unveiled Omniverse Cloud Sensor RTX, a microservices enabling sensor simulation for autonomous vehicles and robotic weapons. At the same time, she presented more than 50 research projects, including generative models and visual language recognition techniques. Innovations such as JeDi and FoundationPose highlight its leadership position, with the company's market capitalization reaching $3.11 trillion on June 24, 2024.

Growth prospects of the technology industry

Microsoft, Apple and Nvidia are currently emerging as inherent growth drivers of the Nasdaq index, thanks to their significant influence in the field of artificial intelligence. Their technological innovations such as Microsoft's Copilot service, Apple Intelligence and Nvidia Omniverse Cloud Sensor RTX are key factors shaping not only the technology sector but also investment opportunities. These companies are at the forefront of trends in AI development and their ability to contribute to Nasdaq's progress makes them attractive opportunities with great potential for further growth and development. [1]

Olívia Lacenová, principal analyst at Wonderinterest Trading Ltd.

* Past performance is no guarantee of future results.

[1] Forward-looking statements are based on assumptions and current expectations, which may be inaccurate, or on the current economic environment, which may change. Such statements are not guarantees of future performance.They involve risks and other uncertainties that are difficult to predict. Results may differ materially from those expressed or implied by any forward-looking statements.