Tech market values jump in Sept on Fed rate cuts, AI optimism

NEW YORK, Oct 02 (Reuters): The market capitalization of many tech firms surged in September, buoyed by a Federal Reserve rate cut that typically enhances future profits and cash flows for high-growth companies, and further fuelled by continued enthusiasm for artificial intelligence.

Tesla's market value surged 22.2 per cent last month to $834.4 billion by end-September, driven by record electric vehicle sales in China in August and its plans to introduce its Full Self-Driving (FSD) advanced driver assistance software in China and Europe.

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Oracle Corp's market value climbed 21.3 per cent to $472.2 billion at the end of last month, with the stock reaching record highs fueled by optimism over the company's projection to surpass $100 billion in revenue by fiscal 2029, driven by AI-led demand for cloud services.

Meta Platforms Inc's market value surged about 10 per cent to $1.45 trillion as their shares also reached all-time highs, driven by the unveiling of its first working prototype of augmented reality glasses, called Orion, and the introduction of new AI capabilities for its services.

Amazon.com Inc's market value increased by 4.4 per cent to $1.95 trillion at the end of last month, and Microsoft Corp's market value rose 3.2 per cent to $3.2 trillion.