Tech Sector Soars on AI and Digital Growth

The technology sector is experiencing significant growth driven by advancements in artificial intelligence (AI) and digital transformation, with major companies like Alphabet, Meta, and Microsoft investing heavily in AI, leading to a projected 16% growth in global semiconductor sales for 2024. Zoom Communications has expanded into AI and beyond video services, witnessing a 44% increase in shares since July 2024, although a recent dip occurred after positive Q3 results. Palantir's shares have surged 285% year-to-date due to its role in the AI economy, though some hedge funds are shifting to ETFs over valuation concerns. Datadog is gaining attention for its AI software, attracting strong bullish sentiment from analysts. Nvidia remains a key player, with revenue driven by data center growth and GPU demand, though its large market cap suggests future gains may moderate.