Investments in AI Technology: The Risks and Opportunities in the Stock Market

The rapid development of Artificial Intelligence (AI), especially in the area of cloud-based services such as the OpenAI model, is driving significant investments. Forecasts suggest that global spending on data centers could rise to two trillion dollars in the coming years. Tech companies are increasingly investing in powerful GPUs and infrastructure to meet growing demands. However, the question remains whether revenues can keep pace with the high development costs. A promising area is Edge AI, where algorithms are executed directly on devices without accessing central cloud servers. This offers advantages such as real-time reactions and increased data privacy. Analysts expect that almost 50% of smartphones will have generative AI capabilities by 2027. However, technical hurdles remain, as current devices often do not provide the necessary computing power for large AI models. Nonetheless, smaller, specific models are gaining popularity and are often easier to implement. Innovations in the semiconductor industry could significantly improve mobile AI computing power. Market analysts predict that the combined sales of smartphones and PCs could reach over 700 billion dollars by 2027 if consumers transition to new features. The challenge lies in developing valuable applications that motivate users to purchase new devices. Amidst this tension, Synaptics, a semiconductor provider, has recently been downgraded by KeyBanc. Analysts see weak growth drivers at Synaptics in the "Internet of Things" and automotive segments, making it difficult for the company to meet its margin targets. Despite its position among the current top AI stocks, there are other stocks with potentially higher return opportunities.