[Click eStock] "Current AI Boom Collapse Concerns Are Unfounded"

Daishin Securities dismissed concerns about the collapse of the artificial intelligence (AI) boom as unfounded and predicted that AI will be a strong supporter for the S&P 500 index to settle in the 5000 range this year.

Moon Nam-jung, a researcher at Daishin Securities, stated, "The driving force behind the U.S. stock market this year is undoubtedly the AI boom," adding, "The 5.5% decline in the S&P 500 index from its peak was largely influenced by inflation and monetary policy, which can be interpreted differently depending on the situation."

He continued, "The foundation for maintaining a return rate in the 4% range since the beginning of the year is rooted in the growth potential of the AI industry," and added, "Just as the internet and smartphones brought about revolutionary changes in the past, AI will also establish itself as a technology that transforms industrial horizons and elevates national productivity to a new level."

He emphasized, "Considering the early stage of AI adoption, the AI industry will grow rapidly in the future alongside further advancements in AI technology," and "The current AI technology is only weak AI in the development phase of AI."

Researcher Moon analyzed, "In the future, AI will advance to the strong AI stage, performing tasks with intellectual abilities similar to humans in all situations," and "Currently, the AI learning hardware sector (semiconductors, servers, memory, etc.) accounts for 90% of total AI market sales." He also stated, "AI application services and AI software sectors will also grow rapidly," explaining, "This is why the compound annual growth rate (CAGR) of the AI market is estimated to reach up to 40% over the next decade."

He explained, "The recent slowdown in the U.S. stock market is a healthy adjustment for the overheated U.S. stock market this year to run at a safe speed going forward," adding, "Among the three major U.S. indices, the Dow Jones Industrial Average, which has played a leading role this month, recently explored the low range and closed up 0.56% on the 19th."

He forecasted, "Considering the Dow Jones Industrial Average's decline of -5.2% from its peak, it reduces the possibility of further declines in the S&P 500 (-5.5%) and Nasdaq index (-7.1%)."