①Mary Callahan Erdoes, CEO of JPMorgan Asset & Wealth Management, stated that investors should focus on the future opportunities brought by artificial intelligence rather than whether there is currently a bubble. ②Erdoes believes that artificial intelligence is not a bubble but a significant transformation in corporate operations.
On Thursday, Eastern Time, Mary Callahan Erdoes, CEO of JPMorgan Asset & Wealth Management, stated that investors should focus on future opportunities brought by artificial intelligence rather than concerns about whether there is a current bubble.
Erdoes expressed that she is not concerned about the valuation issues of artificial intelligence and believes that it is bringing opportunities that have yet to be fully recognized and understood.
“I feel we are at the edge of many such developments,” she said during a panel discussion.
“Therefore, there is a disconnect between the market’s expectations for AI valuations and their actual value. These companies have not yet comprehended this through practical applications. But as Hemingway put it, ‘How did you go bankrupt?’ It always progresses very slowly, then suddenly happens. I believe this will be the case with artificial intelligence.”
Artificial Intelligence Is Not a Bubble
As the AI boom has driven up valuations of companies such as NVIDIA, AMD, and numerous firms involved in AI-related transactions, investor concerns about a potential bubble have emerged, causing recent market volatility.
Just this Thursday, U.S. stocks plummeted again, marking their worst performance in nearly a month as panic resurfaced in the market.
Erdoes commented: “Artificial intelligence itself is not a bubble. That’s an absurd concept… We are on the cusp of a major, transformative shift in how businesses operate.”
“So if you ask yourself whether AI is in a bubble, I think you need to consider your answer carefully because, in the U.S., we’ve started making progress, though we’re far from incorporating all related costs directly into profits.”
"You will see explosive growth in both revenue and expenditures, and the suppliers supporting it must find ways to ensure the process moves forward smoothly," she added.
AI investment still has a long way to go.
Similarly, Michael Arougheti, CEO of Ares Management, a global leader in alternative investment management, stated that he believes the current level of investment appears insignificant compared to the immense potential of artificial intelligence.
Arougheti remarked, "In terms of economic investment relative to the scale of the economy, we still have a long way to go. We cannot supply fast enough to meet near-term demand. So, I don’t think concerns about a bubble are necessary just because the valuation figures are large, and (AI) truly is revolutionary."
When discussing macroeconomic issues, Edos said she also does not believe the economy is on the verge of a recession.
"People have been calling for a recession for five years straight, but it just hasn't happened," she added. "If there's no recession in the future, this is an excellent buying opportunity, and you should buy aggressively."
Editor/Doris
