Despite a recent crash in technology stocks and concerns about over-investment in artificial intelligence (AI), some of the biggest US tech companies are convinced that AI will continue to gain in relevance and viability, with many reporting larger AI spending budgets in August.
Meta chief executive Mark Zuckerberg, for example, said the company's capital expenditure on AI could hit US$40 billion (S$53 billion) in 2024, and reasoned that it is better for Meta to build capacity before it is needed, as opposed to being too late.
In the first six months of 2024, Big Tech firms like Meta as well as Microsoft, Alphabet and Amazon spent a total of US$106 billion on Al, despite analysts noting that so far, they have little to show for it.
Big Tech's collective forecasts showed that their AI spending could more than double by the year end.
Yet, those forecasts did not prevent a broader dive in tech stocks in early August that saw the largest tech companies on Wall Street, led by AI chipmaker Nvidia, lose as much as US$1 trillion in market value before recovering.
Now, questions are surfacing over whether the technology is overhyped and where value can still be found in the sector.
Ms Fabiana Fedeli, chief investment officer at London-based investment manager M&G Investments, told The Sunday Times that there are still opportunities to invest in AI stocks as the technology gradually becomes more mainstream.
"The power of AI is that it permeates many different sectors, yet at the same time, is in constant development. As chips become more powerful, technologies like generative AI will be able to do only more," she said.
Before channelling money into AI, though, investors must first have a long-term view of the sector, said Ms Fedeli.
هذه القصة مأخوذة من طبعة August 18, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
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هذه القصة مأخوذة من طبعة August 18, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
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