The stock market continues to ride the AI wave in 2024. After the strong quarterly results from chip manufacturer Nvidia, not only did US indices gain, but so did the DAX. The German benchmark index jumped to a new all-time high of around 17,350 points after the stock market opened (as of February 22, 2024, approximately 9:30 am).

Yesterday, Nvidia presented the fresh numbers that investors and analysts had been eagerly awaiting. And once again, the chip giant exceeded expectations and presented new records. As a result, Nvidia’s stock climbed nearly 10 percent – on an annual basis, the stock price has more than tripled.

Artificial intelligence drives the stock market The topic of artificial intelligence (AI) has been relevant for years, but it wasn’t until ChatGPT became publicly available that the AI hype really took off. Artificial intelligence is likely to be the decisive technology of the coming years and is causing a wave of euphoria in the stock market.

Many globally operating tech companies such as Microsoft or the German SAP are benefiting from the AI boom. But it is the US chip giant, Nvidia, that is a big winner of the significantly increased use of artificial intelligence in almost all areas.

The company based in California also set a new revenue record in the 4th quarter of 2023. Nvidia earned $22.1 billion and once again exceeded the analysts‘ forecasts, who on average had expected $20.4 billion. Net profit amounted to a gigantic $12.3 billion.

Nvidia and the indices Things are going well, to put it lightly, for Nvidia. And it is quite possible that the development will continue at such a rapid pace. For the first quarter of 2024, the company is predicting a revenue of $24 billion. The Nvidia boom has also boosted the indices in Japan and Germany, setting new records. The AI hype is helping to drive stock markets worldwide.

However, investors should always be prepared for possible setbacks, despite the euphoria. In the coming weeks, other topics such as central bank interest rate policies will also come into focus. But one thing is certain: the DAX’s new all-time high cannot be taken away. Whether it can be maintained in the short term is another question.