(Reuters) -Top technology companies hit fresh valuation milestones in October, as their shares climbed on expectations of robust demand for AI chips and computing infrastructure driven by the
AI Surge Fuels Record Tech Valuations and Chipmaker Investments
Impact of AI on Technology Valuations
(Reuters) -Top technology companies hit fresh valuation milestones in October, as their shares climbed on expectations of robust demand for AI chips and computing infrastructure driven by the artificial intelligence boom.
Major Players and Their Valuations
Nvidia’s shares jumped nearly 11% over the past month, adding about $500 billion in market value as it became the first company to reach a $5 trillion valuation. Chief Executive Jensen Huang this week announced $500 billion in AI chip orders and plans to build seven supercomputers for the U.S. government.
Investment Trends in Semiconductor Firms
Tech shares have risen sharply on optimism over AI’s potential and a series of partnerships and deals with major global companies, including OpenAI, Oracle, Nokia and drugmaker Eli Lilly.
Market Reactions and Future Expectations
Microsoft and Apple also reached $4 trillion market valuations by end-October, just over three months after Nvidia’s surge to that level in July.
Microsoft reported record capital spending of nearly $35 billion for its fiscal first quarter on Wednesday and said it expects investments to rise further this year
Broadcom gained 17% over the past month to reach a $1.82 trillion valuation, while TSMC added 15% to $1.28 trillion and Alphabet climbed 13% to $3.32 trillion.
The market value-to-capital expenditure ratio for semiconductor firms stood at 75.1, the highest among all global sectors, suggesting investors expect strong returns from the heavy AI-related spending by chipmakers.
The market values of Berkshire Hathaway, JPMorgan Chase and Tencent Holdings fell 5.4%, 3.1% and 2.5% over the past month to $1.03 trillion, $840 billion and $760 billion, respectively.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru. Editing by Mark Potter)
