- Former Cisco CEO claims that AI will propel the stock market for the next ten years.
- A recent run of newly ousted Nvidia on Artificial Intelligence stock discloses a growing market power.
Ex-Cisco Systems Corporation CEO John Chambers predicted that AI will dominate the stock market for the next ten years. Commenting at the VivaTech conference in Paris, Chambers underlined that the AI technology will impact the development of the tech sector and predicted the three-to-one ratio of AI-related stocks against non-AI ones.
AI stocks up for a great performance
It is also clear that the influence of AI-based systems is already on the stock markets. Recently, Nvidia was reported to be one of the cutting-edge AI chip manufacturing companies. Since the end of the year 2022, the company’s stock has risen by a factor of five.
This boost stems from the need to have more AI products just as the Cisco firm was significant during the internet expansion. These conclusions were made by Chambers that the share of Nvidia’s sales reflects the development tendencies of the AI market.
Investment Surge in AI
From this year’s first quarter, Chambers observed that 38 % of the venture capital in the U. S. was invested in AI stocks, he predicts this figure to grow rapidly.
AI received its proportion of investment globally, across VCs, and in Europe during the same period; 12%, respectively. For huge profits, he suggested that investors ought to invest in AI stocks continuously in the next five to ten years.
Transformational Impact on Jobs
Other areas that are likely to be affected by AI in the future include the job market, despite the ability of AI to revolutionize various fields.
The chief executive of Publicis, Maurice Lévy, accepted the fact that due to AI some of the positions may be cut, but new positions, which will generate greater value, will emerge as well. He feels that firms that adopt AI at the initial stages of their industry will record more expansion and employment.
Stock Market Records
Recently, the S&P 500 and the Nasdaq Composite touched new highs with the help of the expectation of receival of money from AI heavyweights such as Nvidia.
The Nasdaq Composite has of course gained roughly 12% in the year to date. Chambers stated that AI is the biggest factor that has caused the dramatic changes in the stock exchanges over the last year and this factor will gradually gain more importance.
Chambers claimed that AI is going to be exponentially more revolutionary than the internet, representing value as high as 3 to 5 times. ”AI will transform every aspect of your life,” he said, as he explained how the possibilities of this technology will positively impact the world.
