Former Cisco CEO John Chambers told CNBC that artificial intelligence will run the stock market over the next decade, citing the dramatic movement of AI over the past 12 months.
He optimistically suggests that investors should consider investing in a "portfolio of AI stocks," which he believes will not just do well but significantly thrive in the next 5 to 10 years, promising long-term gains.
Chambers passionately stated that AI would not only select the winners and losers in the IT industry but that shares tied to the technology would likely exceed non-AI companies by three to one in terms of returns, a transformative shift in the stock market landscape.
Stocks in AI
The former Cisco CEO also stated that about 38% of venture money in the United States was invested in AI stocks during the first quarter. He expects it to rise to "way over" 50%, estimating that 12% of venture money poured into AI stocks in Europe during the first quarter.
For instance, Nvidia, a leading AI chipmaker, has seen its stock price increase fivefold since the end of 2022, a testament to the potential success of AI stocks. After more than doubling by 2023. The surge in demand for AI-related goods has driven most of the company's upswing.
According to VCPost, Nvidia's stock price saw a 12% surge this year, mainly due to AI-drive profits.
In contrast to Cisco in the internet sector, Nvidia asserts an inevitable dominance that indicates its industry shortly. But like the internet, Chambers believes AI will be like the internet, transforming human lives in every aspect three to five times more powerful.
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