Former Cisco CEO John Chambers predicts that artificial intelligence will be a driving force in the stock market over the next decade. Chambers, now the founder and CEO of JC2 Ventures, believes that AI will determine the winners and losers in the technology sector, with AI-related stocks likely outperforming non-AI stocks in terms of profitability.
Speaking to CNBC at the VivaTech conference in Paris, Chambers emphasized the significance of AI in investment portfolios. He suggested that those who consistently invest in AI stocks over the next five to 10 years will see significant returns.
Chambers noted that AI stocks are already attracting significant interest from investors, with 38% of venture capital in the US funneling into AI-related investments in the first quarter of the year. He expects this percentage to surpass 50% in the coming years. In Europe, 12% of venture capital went into AI stocks in the same period.
One of the standout companies in the AI market is NVIDIA, a manufacturer of AI chips. NVIDIA’s shares have seen substantial growth, with a notable rally driven by increased demand for AI-related products. Chambers likened NVIDIA’s position in the AI market to Cisco’s role in the internet market, indicating the company’s influential stance in the industry.
Maurice Lévy, president of Publicis, acknowledged the transformative impact of AI, recognizing that while the technology may lead to some job displacement, it also paves the way for new, higher-value job opportunities. Lévy expressed confidence that companies adopting AI early on will experience growth and contribute to job creation.
The S&P 500 and Nasdaq Composite recently reached record levels, with AI playing a significant role in driving market momentum. Chambers highlighted the influence of AI on stock market movements and predicted that AI will have a profound impact on individuals’ lives, comparing it to the transformative power of the internet.
In conclusion, Chambers’s insights shed light on the growing importance of artificial intelligence in the stock market and broader technology sector. As AI continues to innovate and disrupt industries, investors are advised to consider the potential of AI-focused investments for long-term financial growth.
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https://www.cnbc.com/2024/05/22/ai-will-power-the-stock-market-for-the-next-decade-former-cisco-ceo.html