Insights 
VT 
- Traders watching the NASDAQ 100 will notice the pattern: each time the AI narrative returns to the headlines, Alphabet, Microsoft, and Nvidia reassert leadership, driving short bursts of momentum across the broader tech index.
- The NASDAQ 100 and semiconductor indices now act as real-time sentiment trackers for AI-related optimism.
- AI boom or AI bubble? Don’t wait for certainty. Whether the AI cycle continues to surge or starts to cool, price swings across major tech names can create powerful setups for both long and short trades.
There was a time when artificial intelligence (AI) was a niche headline. Now, it is a market driver. This month, OpenAI reportedly reached a $500 billion valuation following a share sale backed by institutional giants, while Google’s Gemini AI unveiled its latest app redesign aimed at boosting user engagement.
These are not just technology stories; they are financial ones. Every headline in this space now leaves a visible mark on markets, from chipmakers and cloud infrastructure providers to the performance of major indices.
When Innovation Meets Valuation
OpenAI’s latest valuation leap signals how investors are pricing future dominance in generative AI. The company’s new infrastructure deal with AMD, involving multi-gigawatt chip supply and potential equity warrants, pushed AMD’s stock sharply higher in early October.
Nvidia also saw renewed buying pressure as traders rotated back into AI hardware names.
It would be easy to call this another “AI rally,” but that underplays what is happening. The OpenAI and AMD partnership represents something deeper: a growing belief among institutions that AI infrastructure is becoming the digital world’s new energy grid.
Every watt, every chip, and every data centre becomes a node of growth. The charts reflect that belief, and they also reveal the risk that markets may be pricing perfection too early.
For traders, that’s where opportunity lies.
Whether the AI cycle continues to surge or starts to cool, price swings across major US tech names can create powerful setups for both long and short trades. Don’t wait for certainty: trade the movement.
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Gemini’s Countermove and Alphabet’s Momentum
Google’s Gemini AI may lack OpenAI’s mystique, but it is catching up quickly. Its upcoming interface overhaul, modelled after engagement-driven social apps like TikTok, is a strategic play to keep users within its ecosystem for longer.
Daily active users are already climbing, and analysts are pointing to a potential upside for Alphabet’s stock if Gemini can turn engagement into revenue.
Alphabet’s share price has quietly stabilised after a turbulent summer, forming a base above key technical support levels.
Traders watching the NASDAQ 100 will notice the pattern: each time the AI narrative returns to the headlines, Alphabet, Microsoft, and Nvidia reassert leadership, driving short bursts of momentum across the broader tech index.
The message is clear. The AI race is now as much about holding investor attention as it is about building smarter models.
AI Boom or AI Bubble?
The AI sector has become the heartbeat of risk sentiment. When OpenAI announces a funding round or Gemini launches an update, technology equities often rise in sympathy.
The NASDAQ 100 and semiconductor indices now act as real-time sentiment trackers for AI-related optimism.
At the same time, traders should remain cautious. The Bank of England recently warned of a potential AI-driven asset bubble, noting that valuations are “running ahead of realised productivity gains.”
In market terms, this means enthusiasm could be moving faster than earnings. When optimism replaces fundamentals, corrections tend to follow.
If the charts begin showing divergence, with prices climbing but volume fading, that would be a familiar sign that the rally may be losing strength.
The Broader Implication for Traders
Artificial intelligence is no longer a speculative niche. It has become a proxy for growth, innovation, and the flow of capital. The developments surrounding OpenAI and Gemini influence more than headlines; they shape liquidity and sector performance.
For short-term traders, this means watching catalysts such as product launches, funding announcements, and infrastructure partnerships, while observing how correlated names like AMD, Nvidia, Alphabet, and Microsoft react.
For longer-term investors, the focus shifts to sustainability. The critical question is whether these companies can continue to justify their valuations once the excitement fades and results are measured in earnings rather than engagement.
Riding the Next AI Wave
The rivalry between OpenAI and Gemini will likely define not only the next phase of AI but also the direction of the broader technology market through the final quarter of 2025.
Each funding milestone, partnership, and price breakout feeds into a larger story: AI is both the market’s biggest opportunity and its most visible risk.
At VT Markets, we see an opportunity to build a portfolio that thinks with you to ensure trades are executed smoothly and immediately with one tap. From AI agents to Trading Companions, the use of machine learning intelligence to streamline your overall trading experience.
For traders, that’s where opportunity lies.
Whether the AI cycle continues to surge or starts to cool, price swings across major US tech names can create powerful setups for both long and short trades. Don’t wait for certainty: trade the movement.
Start trading US stock CFDs with $0 commission at VT Markets and catch the next move in the AI wave.
