The Nasdaq Composite Index closed the first half of 2023 with a 32% gain, its best first half since 1983. The index was buoyed by strong gains in big tech stocks including Apple, Microsoft and Amazon. These actions were fueled by continued optimism about the growth of artificial intelligence (AI).
AI is seen as a major driver of future economic growth, and investors are betting that big tech companies will be the main beneficiaries of this growth. This optimism has been reflected in AI-related stock prices, which have skyrocketed in recent months.
For example, shares of Nvidia, a leading maker of AI chips, have more than doubled in value since the start of the year. And shares of Alphabet, Google's parent company, are up more than 15%.
The strong performance of the Nasdaq in the first half of 2023 is a sign that investors remain optimistic about the future of the technology sector. However, it is important to note that the market remains volatile and there is no guarantee that the Nasdaq will continue to rise in the second half of the year.