Barclays analysts have claimed that artificial intelligence (AI) stocks, while expensive, represent a real opportunity for investors. The analysts point to the spike in tech valuations, with AI contributing to the relatively narrow range of returns. While they believe that any retracement in the market would present a tactical opportunity for investment, they do not think that multiples have risen to historical extremes. The larger AI economy should also help companies to grow into their valuations over time.
The analysts predict that the US market and tech hegemony will remain in place but predict that spoils are likely to fall to the few key tech names. While AI will be a major narrative for risk assets in 2023, most of its near-term value will accrue to a handful of key names in the foundational hardware segments of the AI value chain. In the longer term, software-level innovation and adoption will primarily benefit tech and service-based businesses.
Overall, although AI may have caused concerns over its potential impact on the market, the Barclays analysts believe that it remains an area where growth is likely. While there may be some volatility in the short term, they believe that investors should continue to assess opportunities in the area.
Frequently Asked Questions (FAQs) Related to the Above News
What do Barclays analysts say about AI stocks?
Barclays analysts claim that AI stocks represent a real opportunity for investors despite being expensive. They view any retracement in the market as a tactical opportunity for investment.
Do Barclays analysts think that multiples have risen to historical extremes in AI stocks?
Barclays analysts do not think that multiples have risen to historical extremes in AI stocks.
What would help companies grow into their valuations over time?
The larger AI economy should help companies grow into their valuations over time.
What do analysts predict about the US market and tech hegemony?
The analysts predict that the US market and tech hegemony will remain in place, but the spoils are likely to fall to a few key tech names.
Who will benefit from software-level innovation and adoption in the longer term?
In the longer term, software-level innovation and adoption will primarily benefit tech and service-based businesses.
Should investors continue to assess opportunities in the AI area?
Yes, despite any potential volatility in the short term, the Barclays analysts believe that investors should continue to assess opportunities in the AI area.
Please note that the FAQs provided on this page are based on the news article published. While we strive to provide accurate and up-to-date information, it is always recommended to consult relevant authorities or professionals before making any decisions or taking action based on the FAQs or the news article.
