Apollo Global Management or Apollo, the global leading private equity, private credit and real estate asset management firm is investing large part of its newly raised assets in artificial intelligence, AI trades, namely AI data centers, leveraged buyouts of AI technology companies and private credit lending to AI technology companies, according to Wolfteam Ltd.'s estimates.
Artificial intelligence, AI is the trade of the moment, with many Wall Street investors and analysts and Silicon Valley technologists and investors forecasting that Artificial intelligence, AI is the fourth industrial revolution that will change everything. The Magnificent 7 AI technology companies Microsoft, Amazon, Alphabet, Meta, Apple, NVIDIA and Tesla are beating the S&P 500 for the last 5-7 years.
Apollo invests in Artificial intelligence, AI for several reasons, according to Wolfteam Ltd.'s estimates:
1) Artificial intelligence, AI is touted as the fourth industrial revolution, which is to deeply change how humanity works, rests, etc, with possible corresponding investment gains
2) Artificial intelligence, AI is the trade that beats the S&P 500 for the last 5-7 years. Apollo is basically forced to invest in Artificial intelligence, AI technology companies by pension funds, endowments, insurers and individual investors in Apollo's funds who are asking why is Apollo not going to beat the indices and achieve outsized investment gains
3) Artificial intelligence, AI technology companies are highly valued, excessively valued by some estimates with huge market capitalization. Thus Artificial intelligence, AI is liquid enough to absorb the close to 500 billion USDs Apollo manages
Artificial intelligence, AI technology companies could turn out to be the latest fad and lead to a AI technology boom and bust akin to the 2000's internet dot com boom and bust, according to many investors and analysts.
The dot com boom and bust bore companies like Amazon and Google, however. So there is a high likelihood that the Artificial intelligence, AI current boom could create the leading technology companies for the nest decades.
No comments:
Post a Comment