Dan Ives, a top tech analyst, says that A.I. The ‘goldrush’ is similar to the dotcom bubble, but it’s more of a 1995 moment than a 1999 one.
Investors have been fascinated by A.I. since November’s release of OpenAI ChatGPT, a new chatbot. Its potential to revolutionize global economics. A.I. is expected to increase productivity and reduce costs in the future. The release of tools to the public has helped lift the markets in 2023, despite persistent inflation, rising rates and constant recession predictions by economists. The Nasdaq Composite, which is dominated by technology, has nearly recovered its losses after dropping over 30% in 2022. It now gains more than 28% year-to-date, while the S&P 500 gained more than 12%.
Some Wall Street analysts are questioning whether stocks will continue to perform well in the second half, citing stretched valuations for Big Tech and A.I. The A.I. plays have been the main drivers of the recent rebound, but Wedbush’s top tech analyst Dan Ives believes it is only the beginning of an \”A.I. Gold rush.
Many tech skeptics, citing the dramatic change in valuations of tech companies, will call today a \”1999 moment\” akin to the dotcom collapse or bubble. The veteran analyst stated in a research note on Monday that he strongly disagreed. While valuations will be a major focus, we still believe in A.I. The tech sector is heading towards a \”1995 moment\” with a runway of growth that has not been seen since the 90s.
Source:
https://fortune.com/2023/06/12/ai-dot-com-boom-tech-analyst-dan-ives/?utm_medium=social&utm_source=facebook.com&utm_campaign=fortunemagazine&xid=soc_socialflow_facebook_FORTUNE
