kingslots| NVIDIA (NVDA.US) profits are too explosive and Samsung says it will push the S & P 500 index to continue to rise

Zhitong Financial APP learned that according to JP Morgan ChasekingslotsThe trading team of artificial intelligence giant NVDAkingslots.US) Another round of explosive profits and steady development means that the S & P 500 may have room for further gains.

"With the AI theme still in force and macroeconomic assumptions still valid, we are likely to continue to hit record highs," a team including Andrew Tyler, head of U.S. market intelligence, wrote in a note to clients. He believes that trend or above-trend GDP growth, positive earnings and the Federal Reserve's pause in interest rate hikes are all "recipes" for a bull market.

On Thursday, the S & P 500 rose slightly before eventually closing down 0.74%, after Nvidia issued a higher-than-expected sales forecast that pushed its share price past the $1000 mark. The S & P 500 index has risen nearly 5% so far in May, driven mainly by strong earnings reports from U.S. companies and expectations that the Federal Reserve will relax policy before the end of the year.

Chip maker Nvidia is an important force driving stock market momentum and a key to the promotion of artificial intelligence. The company's share price jumped more than 9% after releasing optimistic sales forecasts, indicating that artificial intelligence investment spending remains strong. This year, Nvidia has contributed about a quarter of the S & P 500's gain.

Traders at JPMorgan believe that although gains may slow, the S & P 500's upward momentum will continue as investors look for artificial intelligence investment opportunities in smaller sectors and the stock market's gains will expand beyond large-cap technology stocks.

Tyler recommends a dumbbell portfolio strategy that includes the "Big Seven" and semiconductor companies, as well as value stocks and cyclical stocks such as banks, credit card companies, automakers and their suppliers, and home builders.

That optimistic view once again contradicts the bank's chief market strategist Marko Kolanovic, who said a few days ago that he does not currently believe stocks are an attractive investment given a range of risks such as high valuations, stubborn inflation and geopolitical uncertainty.

Although it is not uncommon to hold different views within the same company, JPMorgan's internal divisions have become more pronounced since last year. Tyler correctly predicted a record high, while Kolanovic's prediction of a crash has not yet occurred.