Nasdaq Hits New High: Apple and Nvidia Lead Tech Stocks as Wall Street Focuses on AI Momentum and Risks

Nasdaq Hits New High: Apple and Nvidia Lead Tech Stocks as Wall Street Focuses on AI Momentum

This week, the Nasdaq Composite Index broke through its all-time high, fueled by strong gains in major tech stocks, reigniting optimism around the artificial intelligence (AI) supply chain. Giants like Apple (AAPL) and Nvidia (NVDA) saw their shares climb, serving as the primary engines of the index's rally. Wall Street analysts generally believe that the accelerating commercialization of AI is reshaping valuation logic for the tech sector, though certain risk factors cannot be ignored.

Heavyweights Rally, Nasdaq Sets New Record

As of the latest trading session close, the Nasdaq Composite stood at a historic high, up approximately 1.5% from its previous peak. Apple's stock hit a 52-week high, driven by strong market expectations for its upcoming AI-enhanced operating system. Nvidia, a core supplier of AI computing power, also saw its shares strengthen, extending its upward trend since 2023. According to Bloomberg data, Apple and Nvidia alone contributed nearly 40% of the Nasdaq's gains for the day.

Analysts noted that this rally is not broad-based but highly concentrated in AI-related sectors. Other tech giants like Microsoft (MSFT) and Alphabet (GOOGL) also posted significant gains, reflecting sustained capital inflows into AI infrastructure and application layers.

AI Supply Chain Heats Up, Capital Expenditure Forecasts Raised

Wall Street's enthusiasm for the AI supply chain stems primarily from accelerating corporate capital expenditure. Several major tech companies recently indicated in earnings calls that they will significantly increase AI-related investments in 2025, covering data centers, custom chips, and large language model development. According to a Goldman Sachs report, global AI capital expenditure is expected to exceed $300 billion in 2025, up about 25% from 2024.

This trend directly benefits upstream hardware suppliers. Nvidia's H100 and subsequent B-series chips continue to see strong demand, while AMD (AMD) and Intel (INTC) are also accelerating their efforts. Additionally, the AI software and application layer is gaining attention, with Microsoft's Copilot product achieving initial commercialization, boosting cloud revenue growth.

Risk Factors: Valuation Bubbles and Regulatory Uncertainty

Despite high market sentiment, some institutions are warning about current valuation levels. The Nasdaq's forward price-to-earnings ratio has approached 35 times, placing it at a historically high percentile. Morgan Stanley strategists point out that if AI commercialization progresses slower than expected, tech stocks could face a correction risk of 10% to 15%.

Moreover, regulatory uncertainty is also rising. The U.S. Federal Trade Commission (FTC) recently announced an antitrust investigation into the AI operations of major tech companies, focusing on data usage and market dominance. In Europe, the EU's Artificial Intelligence Act has entered the implementation phase, potentially increasing compliance costs for companies.

Macroeconomic factors also warrant attention. The Federal Reserve hinted in its latest meeting minutes that if inflation data remains above target, it may delay the timeline for interest rate cuts. A high-interest-rate environment pressures growth stock valuations, especially for unprofitable AI startups.

Market Outlook: AI Remains the Main Theme, but Stock Selection is Key

Overall, the AI supply chain remains the core theme for the U.S. stock market in 2025. Most analysts believe that as AI technology evolves from the training phase to inference and deployment, structural opportunities exist across computing power, data, and applications. However, investors should be cautious about short-term overheating risks and prioritize leading companies with strong cash flow and competitive moats.

UBS strategists suggest focusing on leading companies in AI infrastructure and vertical applications while diversifying holdings to reduce volatility. For individual investors, dollar-cost averaging into tech-themed ETFs may be a more prudent approach.

Risk Warning: The above content is for reference only and does not constitute investment advice. Markets carry risks; invest with caution. Data cited in this article comes from public sources and may be delayed or inaccurate; readers should make independent judgments.