Thursday's Hot Stock Trends

The broader stock market risks giving back some of its gains since April’s Liberation Day. President Trump continued to escalate tariff threats to the country’s trading partners. Bitcoin (BTC-USD) is a hot trend that closed at another record high. Prices topped $112,000 on Wednesday afternoon. The cryptocurrency benefits from the ongoing weakness in the U.S. dollar. Markets are growing increasingly concerned that the U.S. would lose its reserve currency status. Moreover, more firms continue to buy Bitcoin, paid for by selling debt.In the artificial intelligence sector, chip giant Nvidia (NVDA) briefly traded at a $4.0 trillion market capitalization. Stock markets typically value a company by projecting its future value based on assumed growth rates. Nvidia has a commanding lead in the AI graphics chip sector. Its proprietary CUDA platform provides the firm with a comfortable moat. Alphabet’s (GOOG) Tensor chips, Advanced Micro Devices (AMD), Qualcomm (QCOM), and ARM Holdings (ARM) do not have a chance to break Nvidia’s market share.In the PC gaming sector, Nvidia has over 90% of the market share. However, limited supplies may only lift GPU prices temporarily. Prices for the low-end RTX 5050 and 5060 are weakening. Additionally, prices for the higher-end RTX 5080 and 5090 will eventually fall toward MSRP.For now, limited supply and excess demand for Nvidia’s AI server product is a bullish tailwind.