“Tech Stocks, Including Nvidia, Prevail Over Bitcoin as Top Choice for Inflation Hedge”

According to Bloomberg Markets Live Pulse, one-third of the population chooses to buy US technology stocks as a hedge against inflation, far exceeding the 5% who choose Bitcoin. Moreover, technology stocks represent a bet on innovation, and in the rapidly growing environment of AI applications, they not only resist inflation but also generate excellent returns.

Table of Contents
Toggle
One-third of investors choose technology stocks to combat inflation
Tech giants steadily rise, becoming a hedge against inflation

According to a real-time market pulse survey conducted by Bloomberg in May, when asked which investment tools they would use to combat inflation, 46% of participants chose traditional gold, but 30% of the population said tech giants were their top choice, while only 5.1% chose Bitcoin as a hedge against inflation.

This survey result highlights the dominant role played by companies such as Nvidia, Amazon, and Meta in the US financial markets, as they expand their influence in key economic sectors. This enables them to generate stable profits and continuously rising prices, leading investors to believe that they will continue to be a source of stable income.

Advertisement – Continue reading below
Especially in the United States, which experienced a banking crisis last year, investors who originally regarded financial stocks as a stable source of income have shifted their focus to the seven tech giants in the US stock market. These tech giants, with the rapid growth advantage of AI applications, have seen Nvidia, the AI leader, rise by 224% since 2022, Meta, the parent company of Facebook, rise by 36%, Google rise by 19%, and Amazon rise by 1% due to the high base period of the epidemic.

Moreover, these tech giants have seen a significant increase in stock prices due to the continuous rise in profits and valuation. Although tech companies, like other growth stocks, are sensitive to changes in inflation and interest rates, tech giants do not have a significant financing requirement due to their abundant cash reserves. Instead, they have created a delicate situation of replacing financial stocks as an investment option after the US banking crisis.

While Bitcoin has also seen a high increase of up to 20%, only 5.1% of people choose Bitcoin as a hedge against inflation due to its high volatility and less popular investment channels compared to tech stocks.

Bloomberg Markets Live Pulse
Bitcoin
Tech stocks
Inflation

Further reading
5/15 Bitcoin ETF receives at least $300 million in net inflows, GBTC sees $27 million entering again
Can’t wait for rate cuts? US inflation pressure continues, and the Fed faces a difficult decision on interest rates.