If the phenomenon of growth in the capitalization of companies, to one degree or another owned by Elon Musk, in the last few weeks is explained by the victory of Donald Trump in the US elections, then the impetus for the growth of the share price of Alphabet, which owns Google, was the recent demonstration new quantum chip. As a result, both companies updated their stock price records this week.
Image Source: Tesla
In general, as CNBC notes, the capitalization of the largest companies in the technology sector on the US stock market increased by $416 billion in one trading day. Alphabet shares reacted to the demonstration of the latest quantum chip by rising by 11% over two days to $195.4 as of Wednesday . This is the maximum value of the stock price of this issuer and exceeds the previous record reached on July 10 and corresponding to $191.18 per share.
For Tesla, the previous record was $409.97 per share, which was reached on November 4, 2021. This week, shares rose in price to $424.77 per share, having gained 6% on Wednesday alone. In general, after Donald Trump’s victory in the US presidential election, Tesla shares managed to rise in price by 69%, increasing Elon Musk’s fortune to new record values. In total, four of the seven largest companies in the US technology sector updated their capitalization maximums this week. In addition to Tesla and Alphabet, Meta✴ and Amazon did this, while Apple rolled back from the record set on Tuesday by Wednesday, and Microsoft and Nvidia did not manage to update their records.
The significant impact of the exchange rate dynamics of shares of companies in the technology sector on the Nasdaq index contributed to its growth by 33% since the beginning of this year. On Wednesday, it rose another 1.8% to reach a record high of 20,034.89 points, surpassing 20,000 points for the first time. Trump’s victory is perceived by many investors as a favorable event for US technology companies, since he, with the direct participation of Elon Musk, is expected to make regulatory easing in this area. On Tuesday, Trump appointed a new head of the US Federal Trade Commission (FTC), Andrew Ferguson, who will replace Lina Khan, known for her policy of blocking large mergers in the high-tech market, in this post. The dynamics of the US stock market are also determined by investor expectations related to the likely reduction of the key rate, which may take place this month.