August 21, 2024
Hi Peter Anthony Hovis
J.P. Morgan has an AI prediction that will be a surprise to many investors.
Many commentators took the Nasdaq’s recent 18% peak-to-trough plunge as a sign of things to come.
They think the AI bubble burst and the exits got crowded fast.
But J.P. Morgan’s researchers have a different take.
They think the AI boom is still early and have some proof to back it up.
They related the AI evolution to the dot-com boom of the 1990s.
But they take a different starting point.
The results are much more positive too.
Here’s J.P. Morgan’s chart that shows the relative sense:
The blue line is the Nasdaq 100 from 1995 to 2002.
The orange line is the Nasdaq 100 from 2019 to now.
If you use these starting points and assume similar adoption cycles, there’s a lot more upside to come.
To their credit, J.P. Morgan wasn’t effusively bullish though.
They did say, “We think it’s time for investors who want to buy into AI to expand their approach.”
We concur.
Click here for more ways to ride the AI bull.
