Nvidia rivals gold as shield against inflation, survey shows
US tech stocks are not only a bet on innovation but also a possible hedge against inflation, according to some respondents in the latest Bloomberg Markets Live Pulse survey.
Gold, the haven of choice for decades, is still seen as the best safeguard against the risk of rising prices, according to 46% of survey participants. But nearly a third said the tech behemoths are their first pick for the role.
The response highlights the dominant role that companies like Nvidia Corp., Amazon.com Inc., and Meta Platforms Inc. are playing in the US financial markets as they expand their sway over major swaths of the economy. That has allowed them to generate steady profits, stoking rallies that are making investors confident that they will continue to be a source of solid gains.
Inflation in the US has come down significantly from the scorching levels in 2022, but it surpassed economists’ expectations during the first three months of the year and has remained stubbornly above the Federal Reserve’s 2% target.
That has left price increases by and large the biggest concern among investors. A majority of the survey’s respondents — 59% of 393 — cited resurgent inflation as the top tail risk facing financial markets between now and the end of the year. The next reading of the consumer price index is scheduled for this Wednesday and is likely to come around 3.4% year over year.
Nvidia, for example, has surged more than six times since inflation first rose past 2% in March 2021. Even Apple Inc., which has seen peaks and valleys,
