NVIDIA Hits Record High as Non-Farm Payroll Data Cools Rate Hike Bets

The recent non-farm payroll data release has opened up a 'valuation decompression window' for AI computing stocks and broader global tech equities. This is due to the cooling of non-farm payroll growth and decline in oil prices, which are reducing bets on Federal Reserve rate hikes.

NVIDIA, the leading player in AI computing power, hit a record high immediately after the market opened on Friday, with its shares rising more than 2% directly at the open to $236.420. The company's total market capitalization approached an astonishing $5.7 trillion.

The cooling of non-farm payroll growth and decline in oil prices are providing a 'valuation relief window' for AI computing stocks and broader global tech stocks, whose valuations rely on the denominator side of the discounted cash flow (DCF) model cooling down.