[US Stocks/Market Trends] Behind the Nasdaq's Record High: Polarization of Tech Stocks and Signs of Change in AI Investment

Hello. This is G.A.
The US stock market this week saw major indices perform solidly, buoyed by a decline in oil prices. In particular, the Nasdaq has been generating excitement by hitting a record high on a closing basis, but a closer look at the details reveals a landscape where the fortunes of individual stocks are clearly diverging.
In this article, I will explain the key points you cannot afford to miss, from the general market overview to notable individual stocks and the latest trends in the AI infrastructure market.

1. Market Overview: Nasdaq hits a record high, but beware of the hidden ‘weakness’
Background of the stock price rise: The drop in oil prices gave the market a sense of relief, leading to buying centered on tech stocks. The Nasdaq hit a record high on a closing basis.

Concerns about market breadth: While the index as a whole is performing well, the composition shows that a few large-cap stocks are pushing up the entire market, as evidenced by the succession of stocks hitting 52-week lows. Caution is required regarding the lack of breadth in the overall market.

2. Notable Topics: The surge in Meta and AMD (Advanced Micro Devices) finally reaching a market capitalization of $1 trillion
The main drivers of this market were, as expected, tech companies deploying powerful AI strategies.

Meta sees a sharp 11.3% surge:
The strong start of the personal AI agent ‘Muse’ was well-received, attracting buying from investors.
AMD surpasses $1 trillion in market capitalization:
Driven by strengthening AI demand, AMD finally reached this major milestone, and NVIDIA also showed a strong recovery, highlighting the strength of semiconductor and AI-related stocks.

Notable political event (US-China Summit):
A US-China summit is scheduled for this Thursday, and cooperation on AI and national security are expected to be major topics. Attention is focused on the impact on future geopolitical risks and high-tech regulations.

3. Signs of a ‘shift’ in AI infrastructure investment?
In the AI market where the frenzy continues, we cannot overlook movements that suggest the tide is slowly beginning to turn.

IPO of SoftBank subsidiary ‘SB Energy’:
Market reaction was not as enthusiastic as expected, indicating a cautious stance among investors.

Fading of infrastructure frenzy:
While explosive investment has continued in AI data center-related areas, there is a possibility that caution regarding overheating and the selection of investment capital have begun.

4. Other market movements: Strong crypto assets and struggling Nike
Bitcoin maintains an upward trend:
Although deliberations on cryptocurrency legislation (the Clarity Act) have stalled, the market is showing firm price action, viewing the moves of regulatory authorities like the SEC as positive factors.

Nike sees a sharp decline due to poor performance:
A series of lost sponsorship contracts and sluggish core business performance are weighing on the stock, leading to a difficult price trend.

Summary
As of September 22, the US market has bright spots such as the Nasdaq’s record high and the breakthroughs of Meta and AMD, but at the same time, a lack of market breadth and cautious views on AI infrastructure investment are beginning to emerge.
With important events like the US-China summit ahead this week, it seems that the ability to select individual stocks will become even more important than just looking at overall trends.