Shares of technology companies rose slightly ahead of Nvidia's earnings report Wednesday.
A bonanza in sales of the graphic-chip maker's semiconductors, which are better suited to the high demands of parallel processes than conventional chips, have caused Nvidia's market value to almost double to roughly $2.4 trillion this year so far.
Other AI leaders, such as Microsoft have also surged in value.
One strategist said the growth in AI commerce is similar to the growth of Internet commerce in the 1990s, and may lead to similar "capital inefficiencies."
"Just like with the Dotcom era, people [will] get it wrong," said Eric Marshall, president at Dallas mutual-fund firm Hodges Capital.
"There's probably some things we'll look back on in 20 years and think, 'Oh, AI was more than just that,'" said Marshall.
South Korean tech giant Samsung Electronics replaced the head of its semiconductor business, who had also served as co-CEO, as the firm lags behind rivals in AI products. Identity-management company CyberArk Software made a roughly $1.5 billion cash-and-stock offer for rival cybersecurity firm Venafi.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
05-21-24 1755ET
