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We recently published a list of 10 AI News Investors Shouldn’t Miss. In this article, we are going to take a look at where Perfect Corp. (NYSE:PERF) stands against other AI news investors shouldn't miss.
Heading into next year, the outlook for artificial intelligence is quite optimistic. It is anticipated that the AI boom will continue boosting US stocks next year, supporting economic growth. However, there is a looming risk of rising U.S. government debt levels which could threaten its upbeat 2025 forecasts at the same time. As per the BlackRock Investment Institute, technological innovations in AI will benefit US stocks more than their European peers.
READ ALSO: 10 AI News Taking Wall Street By Storm and Top 12 AI Stock News and Ratings Dominating Wall Street
Meanwhile, private markets will increasingly play a key role in financing AI-related infrastructure. The institution further stated that economic growth may cool next year, but it is anticipated that the Federal Reserve will not be able to lower interest rates meaningfully given that inflation remains sticky and above the central bank’s target.
“We’re watching very closely rate repricing dynamics, we’re also watching very closely tariffs announcements that can lead to higher inflation expectations and markets volatility”.
The current year was marked by concerns over the high valuations of the Mag 7 stocks, and investors are keenly watching how things will turn out this year. In particular, Citigroup analysts are generally optimistic for 2025, noting how the Magnificent 7 isn’t trading at unprecedented valuations. Instead, it is the other S&P-500 stocks that are at a higher risk.
On the other hand, Goldman Sachs analysts anticipate that the Magnificent 7 will continue outperforming the rest of the S&P-500 in 2025, albeit only by 7 percentage points. This is the lowest amount that it has witnessed in seven years. In turn, UBS analysts anticipate 16% earnings growth in 2025 for AI-related companies and the broader technology sector.
“With big tech looking to spend over USD 200bn in capex this year, we believe further innovation is in store for the technology. AI is disrupting traditional industries, from video-making and music, to education, to name a few”.
Even though there is optimism around AI, some experts are also advising caution. An MIT economist Daron Acemoglu estimates that only 5% of jobs will be replaced or substantially assisted by AI within the next decade. This prediction warns of potential overinvestment and the risk of an economic downturn, similar to the dot-com bubble in the early 2000s. Looking at different analyst’s predictions, it is safe to say that while AI is poised to drive significant advancements and economic growth by 2025, adopting a balanced approach will help in fully harnessing its potential.