The Nasdaq has concluded an extraordinary first half 2023 with a 32% gain, marking its sharpest first-half jump since 1983. This achievement is remarkable, considering the transformative changes in the tech industry over the past four decades. From the rise of Microsoft and the dot-com bubble to the emergence of trillion-dollar companies, the industry has experienced significant shifts. However, none of these periods have witnessed a start to the year as impressive as 2023. This surge in tech stocks comes amidst a potentially shaky US economy. The risk of a recession and the collapse of Silicon Valley Bank in March have loomed over the markets. Despite these challenges, momentum and the fear of missing out have been major driving factors for investors, even as concerns about overvalued stocks persist. After a challenging 2022, in which the Nasdaq lost one-third of its value, the focus shifted to cost-cutting and efficiency. Major companies such as Alphabet, Meta, and Amazon implemented mass layoffs, leading to improved earnings and a more realistic growth outlook. In 2023, Meta and Tesla have more than doubled in value, while Alphabet is up 36% after a significant drop in 2022.
Tech companies like Nvidia, Microsoft-backed OpenAI, and Apple have played key roles in driving growth. Nvidia’s shares soared by 190% in the first half, surpassing a market cap of $1 trillion. OpenAI’s ChatGPT program has gained recognition, and Apple’s announcement of the Vision Pro headset has reignited investor enthusiasm. The headset, priced at $3,499, marks Apple’s first major product release since 2014. Bryn Talkington, managing partner at Requisite Capital Management, expressed confidence in tech’s continued dominance, particularly in artificial intelligence (AI).
