AI-Driven Stocks: Will Their Rise Continue?

Stocks rising due to AI, how long could they last?

I always love how the stock market reflects general market sentiment

By the way, when the stock market is not doing well, everything else stops doing well yeah. People would feel bearish when the stock market is bearish. This will in turn slow down decisions to invest, including property investments too. If the stock market truly reflects the business situation, that would also mean businesses are not doing well. Job market will thus be impacted too which meant demand for goods and services will fall or has fallen. This is why stock market news are always worth a read and this is also why I am sharing the below piece of news too.

Article in themalaysianreserve.com The S&P 500’s three-year, $30 trillion bull run has largely been driven by the world’s biggest tech companies like Alphabet Inc. and Microsoft Corp., as well as firms benefiting from spending on AI infrastructure like chipmakers Nvidia and Broadcom Inc., and electricity providers such as Constellation Energy Corp. If they stop rising, the equities indexes will follow.

“These stocks don’t correct because the growth rate goes down,” said Sameer Bhasin, principal at Value Point Capital. “These stocks correct when the growth rate doesn’t accelerate any further.”

Of course, there are still plenty of reasons for optimism. The tech giants that account for much of the AI spending have vast resources and have pledged to keep pumping in cash in the years ahead. Plus, developers of AI services, like Alphabet’s Google, continue to make strides with new models. Hence the debate.  Article in themalaysianreserve.com

AI, AI and AI, it can also be overvalued lah

When the hype starts, everyone starts buying. The belief is that the AI will be the future. This is true. However, as people buy and push prices higher, the expectations must be met as well. If not, very soon people will feel jaded because they have purchased at such a high price and no one is buying it from them at a higher price. At the same time, expectations of AI does not yet mean companies will be profiting from it yeah.

It’s coming… It’s coming… Wait??

It could also be at the stage of R&D… maybe about to start production but are the buyers all ready to buy? That’s another thing altogether. Everyone thinks AI is the future BUT how many of us actually subscribe to an AI service? Yet, these AI companies must hire people first, must pay for the rental… for the servers… for the storage and more before they even have a product to sell. So, everything is actually based on expectations. Just need to imagine what happens when expectations fall short?

All the best and read more. I will do best to keep everyone updated too. Subscribe yeah.

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