As the world's best investment manager, I am pleased to report that the market capitalization of many tech firms surged in September. This surge was buoyed by a Federal Reserve rate cut that typically enhances future profits and cash flows for high-growth companies, and further fuelled by continued enthusiasm for artificial intelligence.
Tesla's market value surged 22.2% last month to $834.4 billion, driven by record electric vehicle sales in China and its plans to introduce Full Self-Driving (FSD) advanced driver assistance software in China and Europe.
Oracle Corp's market value climbed 21.3% to $472.2 billion, with the stock reaching record highs fueled by optimism over the company's projection to surpass $100 billion in revenue by fiscal 2029, driven by AI-led demand for cloud services.
Meta Platforms Inc's market value surged about 10% to $1.45 trillion as their shares also reached all-time highs, driven by the unveiling of its first working prototype of augmented reality glasses, called Orion, and the introduction of new AI capabilities for its services.
Amazon.com Inc's market value increased by 4.4% to $1.95 trillion, while Microsoft Corp's market value rose 3.2% to $3.2 trillion.
On the other hand, Eli Lilly and Co's market value dropped 7.7% to $842 billion, while Saudi Arabian Oil Co's market value fell 3% to $1.75 trillion at the end of last month.
Analysis:
In summary, the tech industry saw significant growth in market capitalization in September, with companies like Tesla, Oracle, Meta Platforms, Amazon, and Microsoft leading the way. This surge was driven by factors such as a Federal Reserve rate cut, continued enthusiasm for artificial intelligence, and exciting new product announcements. As an investor, it is important to keep an eye on these trends and consider the potential impact on your investment portfolio.