In 2024, shares of Nvidia (NVDA) nearly tripled (up 183%). The AI-chip colossus temporarily deposed tech giant Apple (AAPL) as the world's most valuable company.
So, what does 2025 hold for the future of AI?
Well, if you believe Athos Salome, it will take a decidedly dark turn.
Salome, a Brazilian parapsychologist who has been dubbed "the Living Nostradamus," allegedly predicted such world-shaking events as the Covid-19 pandemic, the death of Queen Elizabeth, and Russia’s invasion of Ukraine.
His forecasts for 2025 include the assertion that "a global incident could expose the autonomy" of AI technologies, The Daily Star reported. Systems, he says, will be able to make irreversible decisions in sensitive areas such as cybersecurity and transportation.
Jensen Huang, co-founder and CEO of Nvidia, has seen his company's stock soar in 2024. (David Paul Morris/Bloomberg via Getty Images)Bloomberg/Getty Images
Analysts predict rise of AI agents in 2025
If that's a little too far out for you, then we have Stanford University, which is, among other things, calling for the rise of AI agents — autonomous intelligent systems performing specific tasks without human intervention.
"In 2025, we will see a significant shift from relying on individual AI models to using systems where multiple AI agents of diverse expertise work together," said James Zou, an associate professor of biomedical data science.
"Looking ahead, I predict that many high-impact applications will use such teams of AI agents, which are more reliable and effective than a single model.
"I’m particularly excited about the potential of hybrid collaborative teams where a human leads a group of diverse AI agents," he added.
Doug Kass also has some strong views about the future of AI.
Kass is a longtime hedge fund manager whose career stretches back to the 1970s at Putnam and includes a stint as research director at billionaire Leon Cooperman's Omega Advisors.
In a post on TheStreet Pro, Kass included observations about AI in his list of 15 big surprises for 2025.
The predictions cover politics, technology and sports, where Kass says the Los Angeles Dodgers and New York Yankees again will square off in the World Series and this time the Bronx Bombers will sweep their California competitors.
Regarding artificial intelligence, Kass says AI-related equities will be compromised by a lack of sufficient electricity and the absence of a “killer app” or related income stream.
The AI revolution's electricity needs for data centers are expected to more than double by 2030 based on current grid capacity, according to Barclays Research.
Barclays estimates that data centers account for 3.5% of U.S. electricity consumption today. The investment firm estimates that that figure could exceed 5.5% in 2027 and 9% by 2030.
"With AI data centers so power-intensive and the AI arms race continuing apace, our nation's supplies of electricity prove inadequate," Kass said. "Power outages become commonplace and consumers' utility bills soar."
Veteran fund manager unveils startling Nvidia stock price prediction for 2025
The need to build new natural-gas-driven power stations will prompt natural gas prices to double, "contributing to further inflationary pressure," Kass argues. An outraged public will demand action and AI data centers will be hit with large taxes to subsidize lower prices for households, he says.
"As the year progresses it becomes clear that there is no material killer app or related revenue stream that is derived from the use of generative AI." Kass said, "Focus shifts from being directed to consumers to helping corporations cut costs."
This transition benefits tech integrators and consultants to the detriment of the hyperscalers, the large cloud-service providers like Facebook parent Meta Platforms (META) and Amazon's (AMZN) AWS.
These tech giants are currently spending billions to build out their AI capacities. Kass says they will recognize that lack of a revenue stream and they'll scale back their capital outlays and budgets.
In turn, that leaves Kass predicting a reckoning ahead for Nvidia's stock price.
"Nvidia's 'day in the sun' abruptly ends, and the share price falls to between $50-$75 in a matter of days, as it grows clear that double and tripling ordering buoyed the company's past reported top and bottom lines," he said.
That in turn will prompt contagion within the sector, hurting shares of Microsoft (MSFT) and other hyperscalers, Kass said.
Quantum computing is the big story in 2025, not AI
He also sees headlines about AI being replaced by headlines about quantum computing, a field of study where quantum mechanics are used to solve complex problems faster than traditional computers.
Shares of some quantum-computing companies have taken off for the stratosphere in 2024. Rigetti Computing (RGTI) , for example, has seen its stock climb by a factor of 15 year-to-date, while the stock price of D-Wave Quantum (QBTS) is 11 times its level at year-end 2023.
Kass also addressed cryptocurrencies, and not positively. He says proof-of-work cryptocurrencies, including bitcoin, in time will be hacked. And if that happens, "bitcoin will become nearly worthless."
He says that if it's hacked, the world's largest cryptocurrency would fall to under $25,000 in the late summer, a long drop indeed, given that bitcoin was at $95,446.78 at last check.
Most other secondary and tertiary cryptocurrencies would fall to zero, Kass said. The collapse in cryptocurrency prices would cause fear of financial contagion, and equities would fall nearly 7% in one month, Kass suggests.
On a brighter note, Kass also predicted that there will be peace throughout the world.
"The Ukraine war is settled and there is peace in Israel. Israel and Saudi Arabia announce a new (and friendly) accord," he said.
