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This is the impact AI is having on the stock market, according to Wall Street experts

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This is the impact AI is having on the stock market, according to Wall Street experts

Artificial intelligence could continue to boom in the next few years, experts believe. Yuichiro Chino/Getty Images

According to Wall Street experts, artificial intelligence could provide a major boost to the economy for years to come.

Productivity gains could match those of the Internet boom in the 1990s.

This means that investors may be in for a big rise in the stock market.

This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.

The market’s top commentators are telling investors they could be on the verge of a big rise in stock prices. The reason for this is that generative artificial intelligence increases growth and productivity.

Wall Street’s enthusiasm for artificial intelligence (AI) doesn’t appear to be waning any time soon. Technology stocks and AI stocks have helped the S&P 500 hit a series of all-time highs so far this year.

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Even though critics of the AI ​​mania warned that the stocks are overvalued, According to many market experts, the current situation is different from the Internet boom in the 1990s. Here’s what some of Wall Street’s top commentators think about artificial intelligence and how it could drive the economy and stock markets even higher.

Fundstrat: Stocks could rise 30 percent next year because AI is not a bubble

According to Tom Lee, there is a global demand for AI automation. Photo by Cindy Ord/Getty Images for Yahoo

The AI ​​frenzy is not a new dot-com bubble, says Tom Lee, head of research at Fundstrat. This means the S&P 500 could rise further to 5200 this year. That would mean an increase of at least nine percent in 2024, according to his forecast.

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The following year, shares could rise another 30 percent, he added in another note. The prerequisite for this is that the Fed further cuts interest rates in 2025.

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“There is a global workforce shortage and demand for AI automation. And it’s these seven or eight or nine companies that are providing these solutions,” Lee told CNBC earlier this month. “Their market cap is growing not just because the U.S. economy is growing, but because they are truly solving a global problem.”

Goldman Sachs: AI will drive the economy in the next decade

The humanoid robot Pepper from the American company Cloud Minds fulfills the desire for a selfie. Paco Freire/SOPA Images/LightRocket via Getty Images

Goldman Sachs estimates that AI could increase global GDP by 1.5 percent over the next decade. Meanwhile, investments in AI could reach $200 billion by 2025. That would correspond to four percent of the overall economy, the bank predicted in a statement last August.

“There will also be an incredible increase in human creativity and productivity as we collaborate with machines to address and solve challenges that have been prohibitive in the past,” said George Lee, co-head of Goldman’s applied innovation office, recently in a “CNBC“-Interview. “I think we will evolve in some ways with these machines.”

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Morgan Stanley: Corporate profits will get a boost

According to Morgan Stanley, the profits of S&P 500 companies could rise sharply due to AI. REUTERS/Brendan McDermid

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According to Morgan Stanley, the profits of S&P 500 companies could rise sharply due to AI. The bank expects net margins to increase by up to 50 basis points in 2025.

The groups that will be most impacted by AI include software, consumer services, and healthcare, among others. “These groups alone account for over 30 percent of the S&P 500’s expected 2025 net income, which speaks to the potential margin opportunities,” the bank said in a recent note.

Deepwater Asset Management: The Nasdaq could double its value

Deepwater Asset Management predicts the Nasdaq could double in value thanks to AI. Johnathan Kirn/Getty

Gene Munster of Deepwater Asset Management believes the AI-fueled bull market could continue over the next three to five years.

“There is massive positive leverage associated with AI,” Munster told “CNBCand rated AI on a scale of 99 out of 100 on its list of top investments. “And ultimately, if this is as big a paradigm shift as I think it is – even if it’s half as big – I think you could see the Nasdaq rise significantly, double, over the next few years.”

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Waddell & Associates: AI will be “oxygen for the economy” and will stimulate markets for years to come

According to Waddell & Associates, AI combined with robotics could create a wave of virtual workforces. Getty Images/Isaac Lawrence

According to David Waddell, chief investment strategist at Waddell & Associates, AI will thrive due to chronic labor shortages. The technology, combined with robotics, could spark a wave of virtual workforces.

Meanwhile, the AI ​​mania doesn’t look like a stock bubble. Other sectors such as financials and healthcare have outperformed tech stocks this year, a sign that the rally could be here to stay. “AI is oxygen to the economy and it will spread everywhere,” Waddell said in a recent “CNBC“-Interview. “This is not a story of ten months, but of ten years.”

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Sanctuary Wealth: The S&P 500 could rise 22 percent before the productivity boom

Experts say AI could have the same effect on the economy as the Internet bubble in the late 1990s. REUTERS/Lucas Jackson

The S&P 500 could rise to as much as 5,800 by the end of the year thanks to the productivity-enhancing effect of artificial intelligence. According to Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, the benchmark index could gain 22 percent this year.

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That’s partly because AI could end up having the same effect on the economy as the Internet bubble in the late ’90s. The S&P 500 rose 220 percent from 1995 to the end of the decade, largely due to rising productivity, Bartels said.

“We were optimistic about the Magnificent Seven. I think when you’re managing a portfolio, it’s very risky not to own some of these names,” Bartels said in a recent “CNBC“-Interview.

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