Former Cisco CEO John Chambers predicts that artificial intelligence will be a driving force in the stock market for the next decade. He believes that AI will play a crucial role in determining the success of technology-related stocks and expects these stocks to outperform non-AI stocks significantly in terms of profitability.
Chambers made these comments during an interview with CNBC at the VivaTech conference in Paris. He also highlighted the increasing amount of venture capital being invested in AI stocks, with 38% of US venture capital going towards AI in the first quarter and a growing trend in Europe as well.
Nvidia, a prominent AI chip maker, has seen its shares soar in recent years, with a fivefold increase since the end of 2022. Chambers likened Nvidia’s position in the AI market to Cisco’s role in the internet market, suggesting that the company’s success reflects broader trends in the technology sector.
Maurice Lévy, president of Publicis, emphasized the transformative impact of AI on the job market, predicting that while some jobs may be lost, AI will generate new opportunities with added value. He emphasized the importance of companies embracing AI early on to drive growth and create high-value jobs.
The S&P 500 and the Nasdaq Composite recently reached new record levels, driven in part by investor anticipation of Nvidia’s earnings. Chambers attributed the market’s significant movements in the past year to AI-related developments, pointing to the positive impact on European shares as well.
Looking ahead, Chambers believes that AI will revolutionize everyday life much like the internet did, but with even greater power. He envisions AI as a key driver of innovation and growth in the coming years, reshaping industries and creating new opportunities for investors and businesses alike.
In summary, former Cisco CEO John Chambers foresees a significant role for artificial intelligence in driving the stock market in the next decade. He expects AI stocks to outperform non-AI stocks and sees the increasing investment in AI as a positive indicator for the future. Nvidia’s success is cited as a reflection of broader trends in the technology sector, with AI poised to transform various industries and create new opportunities for growth and innovation.
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https://www.nbcboston.com/news/national-international/ai-will-power-the-stock-market-for-the-next-decade-former-cisco-ceo-says/3376500/