We recently published a list of 10 AI News Investors Should Not Miss. In this article, we’ll look at where Perfect Corp. (NYSE:PERF) sits alongside other AI news that investors shouldn’t miss.
Heading into next year, the outlook for artificial intelligence is quite optimistic. The AI boom is expected to continue boosting U.S. stocks next year, supporting economic growth. However, there is an imminent risk of an increase in the level of US government debt, which at the same time could threaten its optimistic forecasts for 2025. According to the BlackRock Investment Institute, technological innovations in AI will further benefit stocks American than their European counterparts.
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At the same time, private markets will increasingly play a key role in financing AI-related infrastructure. The institution further stated that economic growth could slow next year, but it is expected that the Federal Reserve will not be able to lower interest rates significantly given that inflation remains stable and above the central bank’s objective.
“We are monitoring rate review dynamics very closely, we are also monitoring tariff announcements very closely which can lead to higher inflation expectations and market volatility.”
The current year has been marked by concerns over the high valuations of Mag 7 stocks, and investors are closely watching how things develop this year. In particular, Citigroup analysts are generally optimistic for 2025, noting that the Magnificent 7 is not trading at unprecedented valuations. Instead, it’s other stocks in the S&P-500 that are at higher risk.
On the other hand, analysts at Goldman Sachs predict that the Magnificent 7 will continue to outperform the rest of the S&P-500 in 2025, but by only 7 percentage points. This is the lowest amount ever recorded in seven years. UBS analysts, meanwhile, forecast profit growth of 16% in 2025 for AI-related companies and the broader technology sector.
“As big tech looks to spend more than $200 billion in investments this year, we believe new innovations are in store for this technology. AI is disrupting traditional industries, from video creation to music to education, to name a few.”
Although there is some optimism about AI, some experts also recommend caution. Daron Acemoglu, an economist at MIT, estimates that only 5% of jobs will be replaced or substantially aided by AI over the next decade. This forecast warns of potential overinvestment and the risk of an economic downturn, similar to the dotcom bubble of the early 2000s. Looking at the forecasts of different analysts, it is safe to say that even if AI is poised to generate significant progress and economic growth by 2025, taking a balanced approach will help realize its full potential.
