(Reuters) - Nvidia Corp (NASDAQ:NVDA) and Alphabet (NASDAQ:GOOGL) Inc saw the biggest jump in their market capitalisation in March, driven by artificial intelligence (AI) enthusiasm and anticipation for new products and expansion plans.
Nvidia's market cap soared to $2.25 trillion at March-end, up 14% from February, while Alphabet's rose 9% to $1.8 trillion.
Nvidia's shares saw an upswing last month as the company announced its latest flagship AI processor is slated for release later this year, while Alphabet's shares got a lift from reports of Apple's interest in integrating Google's Gemini AI engine into the iPhone.
The AI-driven market optimism also lifted Taiwan Semiconductor Manufacturing Company (TSMC). TSMC's market cap jumped about 12% to $632.5 billion.
Conversely, Tesla (NASDAQ:TSLA) Inc faced the largest market cap drop, falling about 13% to $559.8 billion amid demand concerns, rising competition, and scrutiny over CEO Elon Musk's $56 billion pay package.
Apple Inc (NASDAQ:AAPL) experienced a decline, with its market cap dropping 5.1% to $2.65 trillion, amid slowing iPhone sales and a recent $2 billion fine from European regulators for antitrust violations.
Overall, major tech firms have experienced significant market gains this year. So far in 2024, Nvidia, Meta Platforms (NASDAQ:META), and TSMC's market caps have risen 81.8%, 42%, and 26%, respectively.
"For investors with excessive exposure to large-cap tech names and looking to diversify beyond the sector, we see opportunities in US small-caps and select European small- and mid-cap stocks," said Mark Haefele, chief investment officer at UBS Global Wealth Management.
"We think their performance should approach that of their large-cap peers amid a supportive macro backdrop, and we see value in adding them in portfolios."