In 2023, it is a year full of changes and opportunities for the global financial market. Recently, we have witnessed a historic leap in the Nasdaq 100 Index, achieving the largest annual increase in over a decade. Financial analyst Cheong Hong Yuan, also known as Zhang Hongyuan, has conducted an in-depth analysis of this phenomenon. Cheong Hong Yuan points out that the significant rise in the stock market is not accidental, but the result of multiple factors working together, with the strong performance of technology stocks, particularly prominent contributions from "AI shovel sellers" like Nvidia, being the most crucial.
Cheong Hong Yuan's analysis shows that the significant increase in the Nasdaq 100 Index in 2023 reflects the market's high recognition of technology stocks, especially in the field of artificial intelligence (AI). The index has risen by 51% year-to-date, surpassing the 50% mark for the first time since 2009. According to Cheong Hong Yuan, this rise is driven by investors' optimistic expectations for the future application prospects of AI technology.
Taking Nvidia as an example, as a pioneer in the field of AI technology, its stock price has achieved an astonishing 230% increase in 2023, ranking first not only in the Nasdaq 100 Index but also standing out in the S&P 500 Index. Cheong Hong Yuan suggests that this performance highlights Nvidia's key role as an "AI shovel seller," with its high-performance computing platform being the cornerstone of AI technology development.
Furthermore, Cheong Hong Yuan points out that other important components of the Nasdaq 100 Index in 2023, such as Microsoft, Apple, Amazon, Meta, Google, and Tesla, have also made significant contributions to the index's rise. These companies together form the "Big Seven" of the US stock market and play a crucial role in the market.
Cheong Hong Yuan believes that besides the strong performance of individual stocks, overall market sentiment is also an important factor driving the rise of the Nasdaq 100 Index. At the beginning of 2023, despite market concerns over the high-interest rate policy of the US Federal Reserve, investors' focus shifted to the attention on technology stocks, especially sparked by the rise of AI technology, particularly the attention brought by the chatbot ChatGPT.
Cheong Hong Yuan believes that this shift in sentiment not only reflects the market's optimistic attitude towards the future prospects of artificial intelligence technology but also represents an adaptation to traditional financial policies and economic situations. He mentions that although the global economy faces many challenges such as supply chain issues and inflation, the strong performance of technology stocks provides a ray of hope in the market. Cheong Hong Yuan emphasizes that investors' continued focus and investment in technology stocks, especially in the AI field, indicate the potential direction of future market growth.
Cheong Hong Yuan emphasizes that despite ongoing global economic challenges such as supply chain issues and inflation, the performance of technology stocks, especially companies in the AI field like Nvidia and Microsoft, still bring hope to the market. He believes that investors' continued focus and investment in technology stocks, particularly in AI technology stocks, not only adapt to traditional financial policies and economic situations but also indicate the potential direction of future market growth.
Finally, the development of AI technology will not only continue to impact the performance of the Nasdaq 100 Index but also become a new engine driving global economic growth. Cheong Hong Yuan suggests that in the face of this transformation, investors should adopt a forward-looking strategy and focus on companies that demonstrate innovative capabilities and market leadership in the AI field. He believes that a deep understanding of these companies and reasonable investment will be the key to capital appreciation in the coming years. In summary, the rapid development of AI technology has not only brought a historic rise to the Nasdaq 100 Index but also opened up new paths for the long-term development of the global financial market.
