NVIDIA fully resurrected! Surged over 6% on Friday, skyrocketed 15% for the whole week, semiconductor sector is booming again

On Friday, NVIDIA continued its rise from Thursday, rising for two consecutive days with an accelerated momentum, closing up over 6% on the day, leading to a cumulative increase of 15% for the week, marking the largest single-week increase in 11 months since May last year. At that time, its financial report revealed that the demand for AI chips far exceeded expectations, with a weekly increase of over 24%.

This week, NVIDIA's market value increased by nearly $290 billion, with just one day's market value increase surpassing Intel.

Looking back to last Friday, due to AMD breaking the convention of providing preliminary performance, combined with ASML and TSMC's financial reports falling short of expectations, investors became worried and suspected whether the enthusiasm for chip stocks and AI concept stocks in the market had become too high. Market panic spread to NVIDIA, with NVIDIA experiencing a rare 10% drop in a single day, marking the largest single-day decline since the outbreak of the COVID-19 pandemic in early 2020, with its market value dropping to $1.9 trillion during trading, hitting a two-month low.

The full recovery this week means that NVIDIA has almost wiped out all the declines from last week, rebounding by 17% from recent lows in just 5 trading days. NVIDIA's stock price closed at $877, reaching its highest point since April 12.

This week, companies such as Meta, Google's parent company Alphabet, and Microsoft have all announced financial reports, all betting on AI and committing to large-scale investments in artificial intelligence.

Analysts believe that the future belongs to artificial intelligence. If every major company in the world invests billions of dollars in this field, NVIDIA will definitely be the biggest winner:

• Analysts from Bank of America commented that the first-quarter reports from major U.S. hyperscale cloud service providers such as Google, Microsoft, and Meta indicate significant upside potential in capital expenditures by 2024, mainly driven by the construction of artificial intelligence infrastructure.
• Industry insiders say, if you look at where all the giants' budgets and capital expenditures are concentrated, it's definitely NVIDIA because they have the best chips.

It is precisely this "lying down to win" logic of NVIDIA that, although it has not yet announced its financial report this week, its performance is eye-catching, surpassing the surge of tech giants like Tesla (14%+) and Google's parent company Alphabet (11%+) after their financial reports were released this week.

The performance of large tech companies is also uncertain. For example, the first-quarter performance was equally strong, with Alphabet and Microsoft soaring, while Meta suffered heavy losses. According to Wall Street News, the reason behind this is that AI investments have already begun to bring huge benefits to Google and Microsoft, but for Meta's performance, it is more like a heavy burden Accelerating the "burning money" pace, the road to monetizing AI is still a long way to go.

This week, not only NVIDIA, but the entire "water seller" semiconductor sector in the AI competition is on the rise. Chip stocks rose against the market on Thursday and accelerated on Friday, with the Philadelphia Semiconductor Index and the Semiconductor Industry ETF SOXX closing up 2.6% and 2.1% respectively. They have been rising for five consecutive days, outperforming the overall US stock market, refreshing the closing high since Tuesday, April 16th, last week, with cumulative gains of about 10% and 9.3% respectively this week, erasing the decline of at least 9% from last week. In comparison, the S&P 500 index rose 2.6% this week, and the Nasdaq 100 rose nearly 4% cumulatively