A.I. Set to Drive a New Tech Boom in 2023
The rise of Artificial Intelligence (A.I.) is revolutionizing the world’s economy and inspiring investors around the world. Since the release of OpenAI’s new chatbot, ChatGPT, in November 2022, investors have been excited about the potential of A.I. to drive productivity and lower costs as A.I. tools are progressively rolled out to the world. Despite mounting concerns about inflation, rising interest rates, and mounting recession predictions from economists, markets in 2023 have been lifted.
Similarity to the Dot-com Era
The dot-com era that began in 1995 has striking similarities to the A.I. revolution of 2023. Experts argued that a new technology was on the verge of rewiring the economy, stocks were coming off a down year, and economists and business leaders were worried about the future of the U.S., mainly due to its rising national debt.
Veteran analyst Dan Ives argues that the development of A.I. represents something similar to the internet and is calling it the “4th industrial revolution.” Ives believes that the A.I. gold rush will continue, fueled by sustained growth in the tech industry and a favorable economic environment.
The Beginning of the “A.I. Gold Rush.”
Ives argues that valuations in tech will be front and center, but A.I. will be driving the sector to a “1995 moment” with a stable and potential growth ahead that the world has never seen since the 1990s. The development of A.I. represents something similar to the internet and is considered the fourth industrial revolution.
Ives predicts the “tech industry” stocks to rise another 10% to 12% in the second half of the year as investors recognize that A.I. is an “$800 billion opportunity” for tech firms, and monetization has already begun.
Leading Players in A.I.
Despite Microsoft and Nvidia remaining the clear market leaders in A.I., Ives also believes that other tech giants, Google, Oracle, Amazon, Salesforce, Palantir, MongoDB, Apple, IBM, Meta, Snowflake, C3.ai, and other tech players will benefit as the technology advances.
Ives sees a strong year ahead for tech stocks in 2023, with the “risk-on trade” gaining momentum as investors focus on the potential of A.I.
Conclusion
With the development of A.I., the world’s economy is poised for another technological revolution that will transform industries across the board. The rise of A.I. inspires investors, and although valuations in tech are front and center, the gold rush has just begun with a long runway of growth ahead. As the technology advances, other tech giants and players will benefit from this fourth industrial revolution.
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