Nvidia in correction territory amid Nasdaq highs

AI microchip

Nvidia recently entered correction territory, with its stock falling over 10% from its peak. This decline comes after a robust rally fueled by investor excitement around AI technology.

Despite Nvidia’s slip, the Nasdaq Composite continues to soar to new highs, driven by strong performances from other tech giants like Apple, Microsoft, and Alphabet.

The market’s mixed signals reflect a broader trend of sector rotation. Investors are taking profits from Nvidia after its impressive gains and reallocating their capital to other promising tech stocks. This strategy allows investors to lock in profits while still capitalising on the overall bullish sentiment in the tech sector.

The Nasdaq’s resilience, despite Nvidia’s downturn, highlights the strength and diversity of the technology sector. While Nvidia’s correction is a reminder of the volatility inherent in high-growth stocks, the broader market remains optimistic about the future of technology and innovation.

Market analysts suggest that Nvidia’s correction may be a healthy pause, providing an opportunity for the stock to consolidate before potentially resuming its upward trajectory. As the tech landscape continues to evolve, both Nvidia and its peers remain at the forefront of driving the next wave of digital transformation.

Investors should stay vigilant, monitoring both market trends and individual stock performance to navigate this dynamic environment effectively.

Nvidia is still holding its $3.2 trillion market cap valuation reached this year.

Nvidia one month chart as of 16th December 2024

Nvidia one month chart as of 16th December 2024

Apple launches its Apple Intelligence – ChatGPT integration with Siri

Apple Intelligence

Apple has finally rolled out updates for iPhone on Wednesday 11th December 2024, iPad, and Mac software, featuring the highly anticipated ChatGPT integration with Siri.

The integration is activated when Siri is posed with complex questions. If a question is deemed more suitable for ChatGPT by Apple’s software, Siri will request user consent to utilise the OpenAI service. Apple has incorporated privacy safeguards into this feature, ensuring that OpenAI does not retain any requests. This integration employs the GPT-4o model from OpenAI.

No OpenAI account is necessary for Apple users to engage with the ChatGPT feature, although Apple offers paid upgrades for ChatGPT. Additionally, ChatGPT can be accessed via certain text menus.

The launch of iOS 18.2 marks a pivotal point for Apple, which is banking on Apple Intelligence to spearhead the marketing for its iPhone 16 series. Apple Intelligence encompasses a range of artificial intelligence capabilities. The ChatGPT integration was initially revealed in June 2024.

The inaugural segment of Apple Intelligence was introduced in October 2024, including text editing tools capable of proofreading or rephrasing, a revamped Siri interface that illuminates the entire phone screen, and a summary of notifications.

Next year, Apple plans to introduce a further update to Apple Intelligence, promising substantial enhancements to Siri that will enable it to perform tasks within apps.

Many investors are of the opinion that the addition of features to Apple Intelligence will enhance iPhone sales, initiate an upgrade cycle, and possibly establish Apple as a frontrunner in consumer AI.

This integration marks a significant triumph for OpenAI by showcasing its flagship product to millions of iPhone users. The financial details of the partnership between Apple and OpenAI remain undisclosed.

To install and utilise Apple Intelligence, users must have an iPhone 15, iPhone 15 Pro, or any iPhone 16 model, despite the fact that ChatGPT integration mainly operates on cloud servers – iPhone owners can enable software updates in the General tab of the Settings app.

Upon updating to the newest Apple software, users will be prompted to configure Apple Intelligence. Their devices will have to download substantial files, including Apple’s AI models, which are necessary for the service’s functionality.

The updates also bring Apple’s image creation app, named Playground, which generates images from people’s descriptions or prompts, and Image Wand, a tool that lets users edit out objects or imperfections from photos.

Apple finally issue a version of AI – not just any AI but Apple Intelligence, whatever that really means.