Veteran Fund Manager Shares Shocking AI Stocks Outlook for 2025
A veteran fund manager predicts a troubling future for AI stocks by 2025
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#AI Stocks#, #2025 Forecast#, #Nvidia#, #Cryptocurrency#, #Quantum Computing#, #Brazil#, #USA#
São Paulo: It’s hard to think about 2024 without AI popping up everywhere, right? This year, AI really made waves, changing how we do so many things.
Take Nvidia, for example. Their stock shot up by 183% in 2024, even knocking Apple off its throne as the most valuable company for a bit.
So, what’s in store for 2025? Well, Athos Salome, a Brazilian parapsychologist, has some pretty dark predictions. He’s been called “the Living Nostradamus” for his past forecasts, including the pandemic and major global events.
According to him, we might see a global incident that reveals how autonomous AI can be. He believes these systems could make irreversible decisions in crucial areas like cybersecurity and transportation.
On a different note, Stanford University is also chiming in. They’re saying we’ll see more AI agents working together without needing human help. James Zou, a professor there, thinks we’ll shift from single AI models to teams of diverse AI agents.
Doug Kass, a hedge fund manager with decades of experience, has his own take on AI’s future. He’s included AI in his list of surprises for 2025, which also covers sports and politics.
Kass believes AI stocks might struggle due to a lack of electricity and no standout “killer app” to drive profits. He points out that data centers are already consuming a significant chunk of U.S. electricity, and that’s only expected to grow.
He warns that power outages could become common, leading to higher utility bills. This might push the public to demand action, resulting in hefty taxes on AI data centers to help lower household costs.
As the year goes on, Kass thinks it’ll become clear that there’s no major revenue stream from generative AI. The focus will shift to helping companies save money instead of targeting consumers.
This change could benefit tech integrators while hurting big cloud service providers like Meta and Amazon, who are pouring billions into AI.
Kass predicts Nvidia’s stock could take a hit, dropping to between $50 and $75 as the reality of their inflated orders sets in. This could also drag down other tech stocks.
He even suggests that headlines about AI might soon be overshadowed by news on quantum computing, which is gaining traction.
Some quantum stocks have skyrocketed in 2024, with Rigetti Computing’s stock climbing 15 times its value since the start of the year.
On the cryptocurrency front, Kass isn’t optimistic either. He warns that proof-of-work cryptos like Bitcoin could be hacked, potentially making them worthless.
If that happens, he predicts Bitcoin could plummet to under $25,000, a steep drop from its current value.
Despite the doom and gloom, Kass does see some hope. He believes there will be peace in places like Ukraine and Israel, with new friendly agreements forming.