📈 Nvidia did it

What’s going on here?

AI trailblazer Nvidia did a victory lap this week, showing off an arsenal of cutting-edge AI offerings.

What does this mean?

Just last week, Nvidia was popping champagne over its stellar results, thanks in large part to some lucrative AI exploits. And now the silicon maestro has doubled down, eager to prove that it’s no one-hit-wonder in the AI arena. See, Nvidia revealed its got its digital fingers – its, ahem, digits – in every AI pie out there, from robotics design to gaming and ad services (including a cozy partnership with ad giant WPP). But the real jaw-dropper is its brand new AI supercomputing platform, set to help tech whizz-kids concoct the next ChatGPT. Alphabet, Microsoft, and Meta are expected to be among the first users of that service – but Nvidia’s planning to build its very own supercomputers for other tech clients to use too.

Why should I care?

For markets: Taking a big byte.

Nvidia’s AI bravado hasn’t gone unnoticed by Wall Street. The firm’s stock skyrocketed a whopping 188% this year, hitting the milestone of a cool $1 trillion valuation – a first for the whole chip sector. That means it’s already around twice the size of its closest rival, TSMC, and nipping at the heels of US tech giants like Apple, Amazon, and Alphabet. With analysts scrambling to calculate new price targets, Nvidia’s stock could even slip past both Amazon and Alphabet – if this optimism isn’t overblown.

The bigger picture: Trickling down.

It’s not just Nvidia that stands to benefit from the rising tide: if you’re searching for other ways to profit, take a look at TSMC and ASML, the backstage crew powering Nvidia’s operations. See, Nvidia leans on TSMC – the chip-making virtuoso – for manufacturing. And TSMC relies on ASML, in turn, for its machines. If that’s starting to sound a lot like alphabet soup, just remember this: when Nvidia wins, they’re positioned to too.

What’s going on here?

The Turkish lira dropped to a record low on Tuesday – the latest gut punch for an economy struggling to catch its breath.

What does this mean?

Turkey’s been rolling the dice with a high-risk economic gambit: trimming interest rates in a bid to tackle inflation – a strategy that puts it at odds with just about every Economics 101 class you ever slept through. Unsurprisingly, those moves have fanned the flames of inflation – and since lower rates are shunned by investors and savers anyway, the lira’s been in free fall ever since, shedding a fifth of its value in the last year.

For a while, a neck-and-neck election held out a glimmer of hope for change, but investor optimism fizzled out when the current government clinched victory over the weekend. That triggered a swift investor retreat – denting the lira by the most in a year and pushing it to a new record low against the US dollar.

Why should I care?

For markets: Bosphorus bust.

There are whispers that a more conventional finance minister could make a comeback in the face of this financial maelstrom, potentially steering the economy back on course. And if that doesn’t happen, then this economic quicksand could deepen. See, government efforts to halt the lira’s slide – like selling off foreign reserves and buying lira in order to shore up the currency – can only last so long: the country’s running out of reserves pretty quickly, and with government finances already on the brink, the lira might soon be sliding again.

For you personally: Pack your bags.

Turkey's economy is looking worse for wear right now, but there might be some respite on the horizon. See, a currency at rock-bottom is exactly what travel-starved, cash-stretched globetrotters will be on the lookout for – and an influx of tourists could give the economy a short-term shot in the arm.