• CleoTheWizard@lemmy.world
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    4 days ago

    It’s because Nvidia is an American company and also because they make final stage products. American companies right now are all overinflated and almost none of the stocks are worth what they’re at because of foreign trading influence.

    As much as people whine about inflation here, the US didn’t get hit as bad as many other countries and we recovered quickly which means that there is a lot of incentive for other countries to invest here. They pick our top movers, they invest in those. What you’re seeing is people bandwagoning onto certain stocks because the consistent gains create more consistent gains for them.

    The other part is that yes, companies who make products at the end stage tend to be worth a lot more than people trading more fundamental resources or parts. This is true of almost every industry except oil.

    • bobalot@lemmy.world
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      3 days ago

      It is also because the USA is the reserve currency of the world with open capital markets.

      Savers of the world (including countries like Germany and China who have excess savings due to constrained consumer demand) dump their savings into US assets such as stocks.

      This leads to asset bubbles and an uncompetitively high US dollar.

    • CheeseNoodle@lemmy.world
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      3 days ago

      The US is also a regulations haven compared to other developed economies, corporations get away with shit in most places but America is on a whole other level of regulatory capture.