(Bloomberg) — The global stock rally powered ahead as Nvidia Corp.’s bullish outlook rekindled the artificial-intelligence mania and data showed the world’s largest economy is still going strong.
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From the US to Europe and Japan, equities hit all-time highs, with the most-valuable chipmaker up 16% — adding $277 billion to its market capitalization. That’s the biggest single-session increase in value ever — eclipsing a $197 billion gain made by Meta Platforms Inc. With the numbers now in, bulls are calculating Nvidia’s new price-to-earnings ratio, or how much investors are paying for future growth. Put another way, the firm’s profits have been growing faster than its shares.
“Nvidia got to where it is because of extremely strong earnings and revenue,” said James Demmert, chief investment officer at Main Street Research. “When a company posts 265% year-over-year revenue growth — like Nvidia did — it deserves a premium valuation.”
The MSCI ACWI Index of both developed and emerging-market shares rose to its highest level ever. The Nasdaq 100 added 3%, while the S&P 500 saw its biggest gain since January 2023. The $16 billion VanEck Semiconductor ETF (SMH) jumped 6.8%. Advanced Micro Devices Inc. and Broadcom Inc. — two other chipmakers expected to benefit from AI growth — rallied to records. Super Micro Computer Inc., which has become a darling for investors wanting exposure to the revolutionary technology, soared…
