In 2024, the tech sector experienced substantial growth, largely attributed to advancements in artificial intelligence (AI) and a renewed interest in cryptocurrencies, catalysed by the results of the November elections. This surge contributed to a remarkable 33% increase in the Nasdaq composite index.
Companies across the sector reported impressive performance metrics, notably Nvidia, which experienced a striking market value increase of US$2.2 trillion. This growth is attributed primarily to the heightened demand for its AI-focused graphics processing units (GPUs) and the introduction of the Blackwellchip, which has become integral in various AI applications. The robust demand for AI technologies has allowed Nvidia to solidify its position as a key player in the industry.
The impact of AI extends beyond hardware; it also significantly influenced the business models of software platforms. AppLovin, a mobile gaming and advertising company, saw its stock value soar by 758%. This meteoric rise was largely driven by the success of its AI-powered advertising tools, alongside a reported 66% increase in revenue from its software platform. The utilisation of AI in advertising is transforming the way companies engage with consumers, creating more targeted and efficient advertising strategies.
Additionally, the cryptocurrency market witnessed a revival, with MicroStrategy leading the charge. The company’s stock surged by 467%, a remarkable ascent attributable to its substantial holdings in bitcoin. The renewed interest in cryptocurrencies, especially following the electoral developments, has rekindled investor enthusiasm, allowing MicroStrategy to capitalise on its strategic investments.
The trends emerging in the tech sector this year underscore the significant and multifaceted impacts of AI and cryptocurrency on business practices. As these technologies continue to evolve, they are poised to reshape market landscapes and influence future investments.
Source: Noah Wire Services