The current strong share price gains in stocks benefiting from artificial intelligence (AI) are based on a more solid foundation than the internet boom at the turn of the millennium. This is because the most important players are already profitable and much stronger financially than the companies 25 years ago. In addition, the necessary infrastructure is already in place on a large scale.
However, the short-term economic implications of the AI megatrend could be overestimated, while the long-term effects are underestimated, meaning that there are likely to be setbacks.
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