Is AI another bubble...? The global artificial intelligence market size is projected to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030
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Stocks linked with AI and stocks of companies which are commonly known to have invested in such technologies are arousing investors' interest, while at FXMAG we wonder if the AI isn't another bubble. Let's hear from Ramesh Mungara (VT Markets).
Ramesh Mungara (VT Markets): It is important to note that predicting market trends and bubbles is a complex task that involves many factors, including economic conditions, investor sentiment, and technological advancements.
The global artificial intelligence market size was valued at USD 136.55 billion in 2022 and is projected to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030. The continuous research and innovation directed by tech giants are driving the adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing.
It is also important to note that the AI market is not a single entity, but rather a collection of different technologies and applications that are being developed and deployed in various industries. Some of these technologies may see more rapid growth than others, and some may experience a period of hype before their potential impact is fully realized.
Tech giants like Amazon.com, Inc.; Google LLC; Apple Inc.; Facebook; International Business Machines Corporation; and Microsoft are investing significantly in the research and development of AI
AI is proven to be a significant revolutionary element of the upcoming digital era. Tech giants like Amazon.com, Inc.; Google LLC; Apple Inc.; Facebook; International Business Machines Corporation; and Microsoft are investing significantly in the research and development of AI.
Whilst North America accounts for 43% of market share for 2022, it is the Asia Pacific region that is forecasted and expected to grow the most (42%) from years 2023 to 2030. For the rest of this year however, the steady growth path the AI market has taken, it is forecasted to grow by another $42.4 billion.
AI is proven to be a significant revolutionary element of the upcoming digital era
The significant investment made into AI will certainly yield favourable results. The AI market remains relatively new to global investors and like most new markets, there will be optimism and opportunities for both long term investors and short-term speculators. It's longevity and true success however will only be realized over time.
While there is always the possibility of a bubble in any market, it is also possible that the growth in the AI market is driven by real demand and the potential benefits that these technologies can offer. It is up to investors to carefully evaluate the opportunities and risks in the market and make informed decisions based on their own analysis and research.
