Yesterday, the U.S. Federal Reserve delivered on the start of what looks likely to become a long-awaited interest rate cutting cycle. Stocks are generally rising in the aftermath as less expensive capital can help drive business growth.
One of those stocks gaining ground Thursday morning was artificial intelligence (AI) chip leader Nvidia (NASDAQ: NVDA). As of 11:40 a.m. ET, Nvidia shares were up by 5.3%. But it wasn’t just the Fed rate cut that had investors pouring into Nvidia stock today.
New industrial revolution
CEO Jensen Huang also just spoke on stage with Salesforce CEO Marc Benioff at the Dreamforce annual technology gathering in San Francisco hosted by Salesforce. He noted that the AI movement is transitioning from an industry of tools to an industry of skills. Huang called the opportunity from here “gigantic.” His comments gave investors reason to believe that the huge run in Nvidia shares isn’t over. Even with it well off its record level, Nvidia stock is still higher by over 140% year to date.
Last week, after a meeting at the White House between top tech leaders and the Biden administration, Huang told reporters that a new industrial revolution is beginning. His excitement for what’s to come showed at Dreamforce. He told Benioff he was there, “Helping to celebrate the beginning of the enterprise AI era.” “This is how industries are built,” he continued. “We’re going to bring a level of automation capability that the world’s never seen.”
Huang called it an extraordinary time in AI development with the scale from here being “exponential.” He’s already proven that Nvidia is the leader in providing the tools needed for AI growth. Now investors are starting to believe that another round of growth will come from Huang’s vision for Nvidia to provide the autonomous AI-powered agents that power the needed skills.
