How much wealth did AI create for American families in the past year? JP Morgan: $50 trillion!
Morgan Stanley analysts said in a report released last week that they estimate that 30 AI-related stocks have increased the wealth of American households by more than $5 trillion in the past year.
Currently, artificial intelligence (AI) is undoubtedly one of the hottest trades in the market, driving the US stock market to new highs. As for how much wealth investing in AI concept stocks has created for American households, JPMorgan Chase recently provided a staggering forecast.
JPMorgan Chase stated in a report released in September this year that the 30 AI-related stocks currently account for around 44% of the market value of the S&P 500 index.
In a more recent update report released last week, analysts at the bank estimated that these 30 stocks have significantly increased the wealth of American households by over $5 trillion in the past year.
The 30 AI-related stocks are listed as follows:
JPMorgan Chase's latest report studied how the significant growth in American household wealth will impact consumer spending.
"We estimate that American households gained over $5 trillion in wealth from these 30 AI stocks last year, which will increase their annual spending level by approximately $180 billion, accounting for 0.9% of total consumption," wrote JPMorgan Chase analysts Abiel Reinhart and Michael Feroli in the report.
When discussing the method for selecting these top 30 artificial intelligence investments, JPMorgan Chase analysts stated, "We used JPMorgan Chase's proprietary technology to screen companies that were frequently mentioned in news reports and earnings conference call transcripts related to artificial intelligence."
In JPMorgan Chase's AI stock list, nearly half come from the semiconductor and hardware industry, followed by the software/cloud/consulting industry, with two companies involved in the automotive/Siasun Robot & Automation sectors.
Although JPMorgan Chase remains bullish on AI stocks, analysts at the bank warn that once the sector experiences a correction, a considerable portion of the recent wealth growth for American households will be erased.
"If AI stocks currently account for 44% of the market value (of the S&P 500 index), a 10% decrease in value will result in a $2.7 trillion decrease in American household wealth and a decrease in consumption of approximately $950 billion," wrote JPMorgan Chase analysts.
However, there are currently no signs indicating a reversal in AI trading will happen soon. As the third-quarter earnings season unfolds, the financial reports from many technology companies, including TSMC, show that their performance is positively driven by the AI trend.
JPMorgan Stanley estimated last week that the current AI investment frenzy could pay off within a few years.
This article is reprinted from "Cai Lianshe," author: Bian Chun; GMTEight editor: Feng Qiuyi.
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