Shares of technology companies fell even as upward momentum in AI issues continued.
Nvidia shares rose by more than 3.5%, bringing gains for the maker of chips enabling artificial-intelligence applications to more than 75%. While Nvidia's pace of gains is not sustainable long term, the company could grow into its current valuation, said one strategist. "Eventually, if the efficiencies are there, if the productivity is there, ultimately, the earnings will be there," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
"Some people kind of question: 'is this a bubble?' I know there's been a lot of talk about that, but if it truly is revolutionary, which is where I am [then revenue from AI] will be some factor of GDP."
Shares of Apple fell after the European Union fined the Silicon Valley giant almost $2 billion, saying Apple set unfair rules for developers of music-streaming apps such as Spotify, in what could be the start of a wider antitrust battle. "After this ruling, the watch [patent] debacle, it seems as though some of the luster is coming off Apple," said Joyce. "It seems time to recharge its reputational glory. Look, I'm talking on an Apple phone, I'm looking at an Apple Watch, I'm using an iPad... Apple is so pervasice in our daily lives, but it does seem like it had couple hiccups recently."
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-04-24 1830ET
