Bitcoin surges under new SEC approval
Bitcoin surged past $50,000 this week, catapulting to a $1 trillion market valuation just a month after the Securities and Exchange Commission granted approval for the first spot Bitcoin exchange-traded fund.
In a similar trend, Nvidia, the semiconductor giant riding the artificial intelligence wave, surpassed both Amazon and Alphabet, solidifying its position as the third-largest U.S. company, trailing only Apple and Microsoft.
Two inflation reports that exceeded expectations this week prompted investors to reassess the pace of Federal Reserve interest rate cuts, introducing a degree of uncertainty regarding whether the bull market rally has already extended too far. Four out of the five largest U.S. tech companies recorded weekly losses.
The AI’s Messi
The AI sector is undergoing a transformation likened to the internet's emergence in the 1990s, with an analyst from Wedbush drawing a comparison between Palantir Technologies and soccer star Lionel Messi, and recognizing Nvidia CEO Jensen Huang as the “Godfather of AI.” The analyst forecasts that AI will attract a $1 trillion investment in the next 10 years.
Tesla's potential upswing
According to Gary Black, managing partner at Future Fund, Tesla's stock might ascend, owing to stable pricing and enhanced Full Self-Driving adoption, which could improve auto gross margins and alleviate investor apprehensions about the company's future profitability.
'Magnificent Seven' bubble
The "Magnificent Seven" U.S. tech giants, Microsoft, Apple, Alphabet, Amazon, Meta, Nvidia and Tesla, have experienced a 140% stock gain in the last year, triggering market overheating and bubble concerns, according to Bank of America’s chief market strategist, Michael Hartnett.
Wealth migration escalates
Affluent individuals are leaving states with high income taxes like California and New York for tax-favorable states such as Florida and Texas, impacting America's demographic and economic landscape.
Zuckerberg praises Quest 3
After testing Apple's Vision Pro, Meta Platforms CEO Mark Zuckerberg declared Meta's Quest 3 virtual reality headset superior in overall quality, citing factors like comfort, ergonomics, a wire-free experience and a vast content library. His comparison aims to dispel assumptions that higher cost equates to better quality.
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Benzinga is a financial news and data company headquartered in Detroit.
This article originally appeared on Detroit Free Press: Bitcoin surges under new SEC approval
