Wall Street has become particularly bullish about tech stocks this year, with advances in artificial intelligence (AI) sending shares in many companies skyrocketing. The industry has massive potential, projected to expand at a compound annual growth rate of 37% through 2030 per Grand View Research. Nvidia (NASDAQ: NVDA) shares have soared 180% year to date, benefiting from Nvidia becoming the go-to for AI-minded companies seeking chips.
Not too long ago, cryptocurrencies looked like one of the best investment opportunities, as bulls thought the digital system could eventually replace traditional payment methods. Investors seem increasingly apprehensive about cryptocurrencies, with Bitcoin's price down 4% in the last six months and Ethereum's down 10%. Meanwhile, tech stocks have been on the rise.
An expected uptick in graphics processing unit sales is likely to come with unintended consequences for Nvidia.