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Big tech delivers as “AI is well that ends well”. Despite recent volatility, fundamentals eventually prevailed as previewed and we got the upside surprise we have been waiting on AI infrastructure spending during 1Q tech reporting season. With AI investment case intact, we raise global tech’s 2024 y/y earnings growth from 18% to 20%. Hence we continue to believe the recent undue correction provides good entry points including in quality AI stocks and big tech. For more details, please read the below article or our latest TechGPT reports.

Is the AI sector in a bubble? Goldman Sachs analysts suggest not. While the 'Magnificent Seven'—tech giants like Apple, Microsoft, and Nvidia—are driving impressive growth, the fundamentals indicate sustainable earnings and strategic investment opportunities. Diversification is key, with mid-sized firms in AI software, cloud infrastructure, and automation offering strong potential. The long-term outlook for AI remains highly promising, with innovations poised to transform industries globally. A balanced and diversified strategy is essential to capitalize on AI's immense potential. Get the full report on our website: https://lnkd.in/d-Pfsq5e #AI #Tech #Investment #Innovation #GoldmanSachs #Diversification #Finance

Stock markets continue to ride the wave of optimism powered by artificial intelligence. The S&P 500 is at a new all-time high and investors are buzzing over a handful of technology companies that have reported impressive chips, hardware, and service sales. Going forward, we think it will be important to understand which companies are fully embracing and utilizing the AI powers at their disposal. * * * * #aritificialintelligence #tech #techcompanies #aiautomation #risingdividends #equitymarkets

Amid heightened geopolitical tensions, interesting times lie ahead for tech and AI-related stocks in particular, as the global tech reporting season kicks off this week. As I recently wrote, we see upside risks to our 18% y/y EPS growth forecast for global tech in 2024 as AI capex and monetization trends remain strong. But let’s see: will fundamentals as usual trump geopolitics?

Is there an AI bubble and is it about to pop? The tech industry have spent hundreds of billions of dollars on AI so far without seeing any profits yet. Silicon Valley is still gung-ho on AI and continue to fund it so as to get a lion’s share of the future Eldorado forecasted by PwC to be $16 trillion to the global economy by 2030. Proof of the appetite to invest by Silicon’s “big boys” is what Sundar Pichai, CEO of Alphabet Inc (Google), said about  AI in a recent earnings call: ”The risk of under investing is dramatically greater than the risk of overinvesting”    Stock investors are, however, concerned that they could relive with AI the experience of the meltdown of the tech stocks when the dot.com bubble burst. Remember what happened? Between March 2000 and October 2002, the Nasdaq fell from 5,048 to 1,139, erasing nearly all of its gains during the dot-com bubble. By the time the index bottomed out in October 2002, most publicly traded dot-com companies had failed Are we going to see the same movie again? As an old Egyptian colleague of mine used to say when asked difficult questions: “Who’s to know?”. Btw, this guy made a career using this phrase as his bosses thought that he was a deep thinker😂

Over the last year or two, the US stock market has been driven by the 'Magnificent Seven'—a group of companies that now account for nearly 30% of the S&P 500’s total market cap, which is nearing $50 trillion. These tech giants, including Apple, Microsoft, and Nvidia, are at the forefront of AI innovation, driving much of the conversation around this transformative technology. However, AI’s impact goes far beyond just these companies. Industries like financial services, with leaders such as Visa and JPMorgan Chase, and healthcare giants like Eli Lilly and UnitedHealth, are harnessing AI to enhance decision-making, streamline operations, and push the boundaries of what’s possible. AI is revolutionizing business across sectors, from optimizing supply chains to opening new research frontiers.   This is an exciting time—not only for big tech but for all industries looking to innovate. As AI becomes a core part of strategy, companies that embrace it will unlock new opportunities and drive the next wave of growth. #investments #globalinvestments #wealth Source: Voronoi by Visual Capitalist

Is Artificial Intelligence a Long-Term Opportunity? I recently came across an article from Goldman Sachs that explores a pressing question: Are AI stocks in a bubble, or are we on the verge of a major investment opportunity? The article dives into the current state of the AI market and its potential for growth. With AI revolutionizing industries and transforming how businesses operate, its potential is undeniable. But is the hype surrounding AI stocks sustainable, or are we merely riding a wave that could burst? Personally, I’m leaning toward the latter — how about you? #AI #ArtificialIntelligence 

Have AI & IT Stocks Peaked or is There More to Come? 🚀🤔 If you’ve been following the AI hype, you might be wondering - have we hit the top? Nvidia’s recent $279 billion single-day loss certainly made headlines. To put that in perspective, it’s nearly half of India’s Forex Reserve! (That left us surprised too 😮) So, is this a sign that AI and IT stocks are running out of steam? Let’s find out 👇🏼 While AI technology is advancing at lightining speed, many experts in the industry say that real-world consumer applications are still lagging behind. This gap between innovation and implementation could be one reason why revenue growth from AI hasn’t lived up to its potential - yet. 🧠💼 Nvidia, the poster child for AI growth, was cruising towards a $3 trillion market cap before this drop. But a single session wiped out $279 billion in market cap (not a record to be proud off, lol) Other tech giants like Microsoft, Alphabet, and Broadcom, who have also heavily invested in AI, are seeing stock prices drop. So, is AI losing its magic? 🧐 Some say slow returns on AI investments could be hurting these companies in the short term. But let’s not forget, these are the same companies that have led tech innovation for years. So is the AI & IT Boom Over? Or Just Taking a Breather? In the world of stocks, what goes up must eventually take a breather. Nvidia’s single-day $279 billion market cap loss - the biggest ever recorded, left many wondering if AI and IT stocks have reached their peak. But is this a warning sign, or just a temporary dip? 🤔 Just months ago, Nvidia was on the brink of a $3 trillion market cap. But after concerns over its monopolistic hold and slow AI revenue growth, the stock took a hit. What’s even more interesting is how other tech giants like Microsoft and Alphabet are facing similar challenges. Could slow returns on AI investments be making investors anxious? Possibly. So, if you’re invested in AI and IT stocks, this could be a moment to reassess your strategy. While the short-term looks uncertain, the long-term potential of AI remains promising. Keep an eye on key players and watch how consumer AI adoption unfolds. So all the tech folks, what’s your take - are we in for a dip or is the best yet to come? Let’s keep the discussion going in the comments below 👇 #AI #TechStocks #Investment #StockMarket #Nvidia

After an exceptional year in 2023, major US technology stocks are reaching new heights, thanks notably to the artificial intelligence (AI) hype. Are we reliving a phenomenon similar to that of the Internet bubble of the 2000s? Read the full focus by Charles-Henry Monchau, CFA, CMT, CAIA #Ustechnology #AIbubble #Internet