Nvidia Stock Hits $5 Trillion. Is the Artificial Intelligence (AI) Bubble About to Burst?

After years of quiet, solid gains, Nvidia (NASDAQ: NVDA) stock has had a breathless ascent over the three years, climbing nearly 1,400%. It flew past Apple and Microsoft to become the most valuable company in the world, reaching a market value of $4 trillion in July, and it's now in a league of its own as the first $5 trillion stock.The combined total of Amazon, Meta Platforms, and Berkshire Hathaway is about $5 trillion, and 9 out of the top 10 companies on the stock market by market capitalization are artificial intelligence (AI) companies. Not only are they the most valuable companies, they're the most valuable companies by far, accounting for about a third of the S&P 500, which is a weighted index.When investors talk about "the market," or when "the market" moves, this is increasingly connected to just a few stocks, rather than the remaining 490 or so stocks in the index. Some analysts are seeing the buildup of a bubble, similar to the dot-com bubble in 2000 that burst -- with far-reaching results that put some companies out of business and put the S&P 500 into decline for three consecutive years, the only time that has happened since the 1940s. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool