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March 2024 – The AI Bonanza

Nvidia’s fourth quarter earnings, released in February, ignited a fresh surge in investor enthusiasm, propelling the stock price to new heights. The company (ticker NVDA) is the poster child for the artificial intelligence (AI) revolution currently gripping the stock market. Central to Nvidia’s success are its Graphics Processing Units (GPUs) – innovative computer chips that are instrumental to the future of AI applications.

With a striking fourth quarter revenue of $22 billion, Nvidia surpassed its Q4 2022 revenue of $6 billion more than threefold. The company currently has high margins, positive cash flow, and an eye-popping growth trajectory, all of which have captivated investors.

Amidst the buzz, financial media outlets have become infatuated with Nvidia, while individual investors tracking single stocks cannot help but experience a spectrum of emotions when witnessing this remarkable surge. Stock market enthusiasts tend to adopt one of two perspectives on the performance of stocks like Nvidia.

One viewpoint looks through the FOMO (fear of missing out) lens. Many investors, attracted by the rapid price momentum, eagerly seek to join the action by purchasing shares. These investors, motivated by the allure of the rising stock price, undoubtably play a role in driving shares higher, often regardless of underlying company fundamentals.

Also In This Issue

Finding Your Cash Comfort Zone
Financial Planning For Health Care Needs
The High-Yield Dow Investment Strategy
Recent Market Statistics
The Dow Jones Industrials Ranked By Yield
Asset Class Investment Vehicles

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IG-03-March-31-2024