Artificial intelligence, AI stocks like NVIDIA, Broadcom, AMD, Celestica, Reddit, Palantir etc. will again outperform in 2025, according to Wolfteam Ltd.'s projections and estimates.
Artificial intelligence, AI's gravitational pull is just too strong. Via AI businesses can save a lot on costs and the nearly 300 000 - 400 000 people annual cuts in technology companies have shown just that in the last 3-4 years. There is a chart showing that since 2015 technology companies have hired more than 4 000 000 people and the cuts up to 2022 were only like 15 % of the total. The artificial intelligence, AI job cuts, however accelerated since 2022 and now the total of cuts compared to the hired total is more like 30 %.
Investors generally have liked technology job cuts and have rewarded with stock price gains the technology companies that have cut the most. Cases in point are Meta and Alphabet. Investors, apparently think technology companies are bloated with personnel and cuts are needed to improve profitability in the long-term. And profitability will ultimately drive dividends pay outs which investors reward with for example 20 % stock price/market capitalization jumps when inauguration dividends are announced. Much like the case of Apple inc, years ago when they announced they would start paying out dividends.
The US technology labor force unemployment is 6.00 %, compared with the overall unemployment rate of 4.00 % for January 2025. This discrepancy is due to the efficiency AI companies like NVIDIA, Broadcom, AMD, Celestica, Reddit, Palantir etc. provide. They make businesses run more efficiently and efficiencies are yet to be realized. That is why their stock market capitalization will continue to benefit in 2025, in Wolfteam Ltd.'s view.
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