- The AI trade is still going strong, with major companies investing billions in data centers, energy, GPUs, and talent. Skeptics fear a bubble, but here are 5 reasons why the AI market is just getting started.
- General market forces and Fed liquidity play a crucial role in boosting AI stocks. With the Fed likely to cut interest rates and Kevin Hassett favored to replace Jerome Powell, the outlook is bullish.
- Unfounded fears caused AI stock prices to drop, but Microsoft clarified that it has not lowered sales quotas. Competitors like Google are also catching up, making the market more competitive.
- The AI productivity boom is just beginning, benefiting businesses across various sectors. Despite reasonable valuations, AI stocks are cheaper compared to the dot-com bubble, offering potential for growth.
- AI is starting to benefit software firms, leading to increased SaaS utilization and positive impacts on earnings. Companies like MongoDB have surpassed expectations, indicating the positive impact of AI on the software industry. The AI trade still has room for growth despite skeptics calling for a bubble.
Read more at Nasdaq: Bears Calling the AI Top Might Be Early – Very Early