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How Much Higher Will Tech Rise after Microsoft's New High?




When Microsoft (MSFT) traded at all-time highs last week, it lifted the valuation of the technology sector. The Nasdaq exchange is on pace to re-take highs not seen since 2021. This is an incredible feat led by Microsoft and the six other “magnificent” stocks.

Tech investors may rejoice in the resiliency of the sector. After the Federal Reserve raised interest rates, it slowed their growth, forcing tech firms to cut tens of thousands of jobs. The cryptocurrency mining boom ended at that time. By late 2022, corporations could not implement artificial intelligence chatbots fast enough.

Nvidia (NVDA) posted a non-GAAP EPS of $4.02. Its revenue more than doubled to $18.12 billion, up by 205.6%. Though shares fell by 3% last week, investors who missed it may buy the stock at current valuations, betting on a rebound. Trading at a lofty 63 times price to earnings, demand for Nvidia’s graphics processors shows no sign of slowing.

In retail, e-commerce giant Amazon (AMZN) is on its way back to the $180 highs of 2021-22. It needs wary customers on a tight budget willing to open their wallets on Black Friday and Cyber Monday. Furthermore, Amazon may attract more Prime subscribers as customers get free shipping, music, and streaming services.

Apple (AAPL), despite facing a slowdown in iPhone sales, commands a market capitalization of nearly $3 trillion. Growth investors are not deterred from its 30.99x P/E.

Expect tech giants to hold their value as they demonstrate growth in the quarters ahead.



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