Wall Street ends higher as Nvidia sparks rush for AI stocks

Wall Street ended higher on Friday, as Nvidia sparked a rush for AI stocks. The tech company's shares surged 12% after it reported better-than-expected earnings, highlighting the continued strength of the AI industry.

But the enthusiasm for AI stocks is nothing new. Investors have been piling into companies with exposure to AI for several years now, as the technology has become increasingly important in industries ranging from healthcare to finance.

The AI market is already worth billions of dollars, and it's only set to grow further. According to a report by McKinsey, AI could add $13 trillion to global GDP by 2030.

Some of the biggest names in tech have seen their stock prices soar thanks to their involvement in AI. Here are just a few examples:

Alphabet (Google): Since 2015, Alphabet's share price has risen from around $500 to over $1600 - an increase of over 200%. This is partly due to the company's leadership in AI, particularly in the development of Google Assistant, its voice-activated AI assistant.
Amazon: Amazon's stock price has risen from around $315 in 2015 to over $3100 in 2021 - an increase of over 900%. The company's success in using AI to personalize its online shopping experience has been a major driver of its growth.
Apple: Apple's stock price has risen from around $110 in 2014 to over $140 in 2021 - an increase of over 25%. While the company is not seen as a leader in AI compared to some of its rivals, it has invested heavily in the technology in recent years, and its Siri assistant is widely used.

Conclusion

So what can we learn from the rush for AI stocks?

AI is set to be a major driver of economic growth in the coming years, with huge potential to add value across a range of industries.
Investors are increasingly recognizing the importance of AI in tech companies, and are keen to invest in firms with a strong AI focus.
While there are risks associated with investing in any sector, the long-term potential for AI-related companies is significant, and it's likely that we will see continued growth in this area in the years to come.

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