Title: Tech Giants Eye Texas as AI Stocks Face Uncertain Future: Predictions for 2024
In 2024, the world is set to witness significant advancements in the field of artificial intelligence (AI) as major corporations embrace its potential for real-world business applications. Companies are expected to leverage AI in supply-chain management, distribution improvements, and customer service interactions. The entertainment industry may even see some TV shows and big-budget movies created using generative AI, highlighting the technology’s immense capabilities.
However, not all AI stocks will fare well in this transformative landscape. Smaller AI companies that have failed to deliver on their promises of using AI for growth will likely face a challenging year, with some experiencing drops as steep as 90% in their stock value. Among the companies expected to face these challenges are AI, SOUN, Upstart Holdings (UPST), and Palantir Technologies (PLTR).
While AI thrives, the U.S. economy is predicted to face stumbling blocks in 2024. Although the economy is projected to grow approximately 2% in the first half of the year, it is expected to contract by 2% in the fourth quarter, painting a gloomy picture for the year-end.
In a surprising turn of events, several tech giants valued at over $50 billion each are contemplating relocating their headquarters from California to the burgeoning tech hub of Texas. Following in the footsteps of Tesla, these companies aim to capitalize on the favorable business environment and attractive tax incentives offered by the Lone Star State.
Sam Altman, who was previously fired from ChatGPT, is speculated to face the same fate yet again, with his departure from the company being permanent this time. Microsoft may also struggle to monetize its partnership with ChatGPT, leading to a potential 15% or more drop in its stock price by the end of 2024.
The Federal Reserve is unlikely to reduce interest rates due to inflation hovering around 3% to 4% throughout the year. The markets, previously bearish in 2023, are now expected to experience a shift with increasing bullish sentiment. The Nasdaq 100 index may remain flat, with large-cap tech stocks experiencing losses. Tesla, however, is projected to be the best-performing megacap tech stock with a first-half decline of 10% or more, followed by a second-half surge of 30-40%. Amazon.com and Alphabet are expected to post gains of 20% and 15% respectively. On the other hand, Apple may face a 5% decline, while Microsoft and Broadcom are likely to see drops of 15% or more.
The cryptocurrency market, particularly Bitcoin, is predicted to undergo fluctuations. Bitcoin’s price may pull back by 15-20% before its halving event in April, leading to a subsequent rally. However, it’s expected to drop by 20-30% in the months following the event. Ethereum is projected to end the year with a decline of over 20%. While some cryptocurrencies like Bonk and Near may face losses of 50% or more, Dogecoin could experience a surge due to the Elon effect.
In terms of regulatory changes, the Securities and Exchange Commission (SEC) may witness leadership changes, as Chair Gary Gensler could leave the agency in the summer. The appointment of a new SEC enforcement chief is anticipated to lead to a stronger crackdown on fraudulent cryptocurrency tokens, with increased prosecution against their founders. Coinbase Global might face repercussions and settle with the SEC for $7.2 billion, resulting in CEO Brian Armstrong stepping down.
The oil sector is predicted to be highly volatile in 2024, with prices fluctuating between $55 and $90 per barrel, finishing the year at around $77. In contrast, gold is expected to be one of the least volatile sectors, trading between $1800 and $2200 per ounce and ending the year at approximately $2047.
Legacy automakers, including GM and Ford Motor, may find their previously ambitious electric vehicle (EV) strategies falter as buyers continue to be dissatisfied with inadequate software and charging networks. GM could write down over $5 billion on its EV business, leading to a decline in its stock price below $20 per share.
As the year unfolds, these predictions will shape the business landscape and steer the global economy. It remains to be seen how closely reality aligns with these projections, but they provide valuable insights into the potential trajectories of various industries and companies in the year 2024.
References:
– [News Article 1]
– [News Article 2]
