Cisco CEO John Chambers at the 2015 CGI Annual Conference in New York.
Adam Jeffery | CNBC
Former Cisco CEO John Chambers told CNBC on Wednesday that artificial intelligence will power the stock market over the next decade.
Chambers, who is also the founder and CEO of JC2 Ventures, said that not only will artificial intelligence determine the winners and losers in the technology industry, but stocks related to the technology will likely have higher returns than non-AI stocks. Out about three to one.
“Artificial intelligence will power the stock market over the next decade,” Chambers told CNBC’s Karen Tso on the sidelines of the VivaTech conference in Paris.
“I think the overall question is, if you’re an investor and you’re investing in an AI stock portfolio, and [if] If you keep doing this for the next five to ten years, you’ll do well.
Chambers said that 38% of U.S. venture capital investment went into artificial intelligence stocks in the first quarter. He expects the proportion to be “well over” 50%, while estimating that 12% of venture capital went into European AI stocks in the first quarter.
Artificial Intelligence Chip Manufacturer Nvidia The company’s shares have soared fivefold since the end of 2022 and more than doubled in 2023.
Chambers compares Nvidia’s position in AI market to Cisco’s in the Internet market. “If you look at Nvidia’s sales, that’s very telling of the overall picture,” he said.
Maurice Lévy, chairman of Publicis Groupe, stressed that a “transformation” with artificial intelligence will occur, as the technology will undoubtedly eliminate some jobs while creating more value-added positions.
“We don’t expect to see a net negative impact, we expect to see a net positive impact,” Levy told CNBC on Wednesday. “And those companies that adopt artificial intelligence, the earlier they adopt it, the more they will grow, they The more jobs we can create with huge added value.”
this S&P 500 Index and Nasdaq Index Shares rose to new highs on Tuesday as investors awaited Nvidia’s earnings report. The Nasdaq is up about 12% this year.
“Artificial intelligence is the reason why stocks have moved so wildly over the past 12 months,” Chambers said. “European stocks and the FTSE have been slower to move but have been positive over the past six months.”
“I think artificial intelligence will be like the Internet, only three to five times more powerful. It will change your life in every way.”
—Karen Gilchrist contributed to this report.
