AI is expected to significantly influence markets for a third consecutive year, as predicted by market experts. Investors are advised to focus on U. S. -based AI companies and sectors benefiting from AI, such as healthcare, cybersecurity, and fintech. Wall Street firms have varying opinions, with some viewing AI as a transformative economic force, while others see it as a potential stock-market bubble. AI investments are set to rise, with major tech firms like Alphabet, Amazon, Meta, and Microsoft likely increasing their capital expenditure on AI infrastructure by 50% to $222 billion by the end of the year. BlackRock estimates AI spending may reach $700 billion by 2030. As AI models grow in complexity, there's an anticipated continued investment in data centers, chips, and power systems. Goldman Sachs expects new AI investment opportunities to appear in 2025, particularly in companies monetizing AI. They identify 11 stocks leveraging AI for revenue growth, including Commvault Systems, Cloudflare, and Mastercard. UBS also foresees successful generative AI applications in healthcare, cybersecurity, and fintech. U. S. stocks have benefited greatly from AI investment, outperforming global markets in 2024.

The U. S. leads with the highest number of data centers, supporting its economic strength. BlackRock predicts that ongoing AI infrastructure construction and the energy transition will support the U. S. economy, favoring U. S. equities over international ones. AI could potentially reduce inflation by boosting productivity and automating routine tasks, increasing the supply of goods and services. This gradual change could contribute to lower inflation and higher economic growth, according to UBS. AI's potential benefits include lowering prices and enhancing economic resilience.