AI Stocks Fuel Wealthy Individuals' Increased Fortunes in 2022

NNicholas February 18, 2024 7:01 AM

A vast majority of the wealth gained by the world's richest individuals this year comes from AI-related stocks. Beneficiaries include Nvidia Corp co-founder Jensen Huang and Meta's Mark Zuckerberg. The rally in these stocks is raising questions about its sustainability.

AI stocks launch Nvidia and AMD executives into billionaire status

The overwhelming rally in artificial intelligence-related stocks has significantly boosted the wealth of Nvidia Corp co-founder Jensen Huang. For the first time, Nvidia's market value has surpassed that of Inc. An interesting twist in this AI-stock craze is the emergence of another billionaire within Huang's family. Lisa Su, the chief executive officer of Nvidia's competitor, Advanced Micro Devices Inc, has joined the billionaire's club as her company's stock doubled over the past year.

AI craze dominates 2022's wealth accumulation

The artificial intelligence frenzy has taken control of the stock market, accounting for the majority of the wealth gained by the world's wealthiest individuals this year. The impact of this trend has been so substantial that it has led to a combined increase of $124 billion in net worth, making up 96% of the total wealth gained, as per the Bloomberg Billionaires Index. This significant shift in the financial landscape underscores the influence and potential of AI-related stocks.

Among the winners of this AI-stock rally, Jensen Huang and Mark Zuckerberg stand out. Huang's wealth has escalated given Nvidia's market performance, while Meta Platforms Inc, owned by Zuckerberg, takes the spot as the second-best performer on the S&P Index for the second consecutive year. Other billionaires who have seen their fortunes surge include Steve Ballmer, who has benefited from Microsoft Corp's partnership with OpenAI, and Michael Dell, who has profited from AI initiatives at Dell Technologies Inc and Broadcom Inc.

The prosperity from the AI-stock rally has not only enriched the already wealthy but has also spawned new billionaires. Charles Liang, co-founder of Super Micro Computer Inc, has seen his fortune triple to $6.2 billion this year as his company's stock has outperformed other AI-related shares. Meanwhile, Alex Karp, co-founder of Palantir Technologies, has seen his net worth rise to $2.8 billion as the shares of the AI-powered software maker jumped 31% in a single day following strong quarterly earnings. Even billionaires like Masayoshi Son, founder of SoftBank Group Corp, have indirectly benefited from this trend.

Questions arise about AI stock rally's sustainability

However, as impressive as these gains have been, concerns are emerging about the sustainability of the AI-stock rally. The magnitude of the wealth accrued has triggered questions about the longevity and stability of this market trend. Michael Hartnett, a strategist at Bank of America Corp, expressed concerns earlier this month, suggesting that the current rush into tech stocks is starting to mirror the dot-com bubble.

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