- Morgan Stanley has published a report on trends in the AI sector.
- The bank’s experts believe that the situation in this market resembles a bubble.
- This is indicated by the growth rate of the segment. However, the possible collapse, according to the report, is still 3-4 years away.
- In this regard, AI, according to the experts of the organization, will be the top investment trend in the coming years.
Experts at Morgan Stanley Bank have stated that artificial intelligence (AI) will be the next global trend in the marketplace. This is reported by CoinDesk with reference to the report of the organization.
In order to confirm its thesis, the bank cited statistics on the stock prices of component manufacturer Nvidia Corp. Since the beginning of 2023, this position’s share price has jumped from $142.6 to $454.16, according to INDmoney:
Remember in May 2023, the company introduced a processor with built-in AI – DGX GH200. Against this backdrop, the rate of tokens related to this technology has jumped.
The MSCI USA IMI Robotics & AI Select Net USD index has also risen since the beginning of the year, albeit not as significantly, Bloomberg reports:
“Given the lack of a peak date for the current AI market rally, we assume the starting point is the launch of ChatGPT in December 2022,” the report said.
According to Morgan Stanley, the current situation in the AI market resembles a bubble. However, a possible collapse is still a long way off, the organization said.
A growth rate of 150% is often typical of bubbles 3-4 years before they burst, experts said. And while Nvidia saw its stock price jump 200%, the broader indexes only jumped about 50%.
The Dangers of AI
While Morgan Stanley sees AI as a lucrative investment opportunity, many experts are calling for tighter controls on the industry. These include, for example, Dr. Jeffrey Hinton, also known as the “Godfather of AI.”
The Center for AI Security (CAIS) has categorized the threat from AI as existential. It also includes, for example, pandemic and nuclear war.
Remember, in July, the UN Security Council held its first meeting on this topic. Among the points discussed were restrictions on further development of software solutions from this sector.