We recently published a list of 10 AI News Investors Shouldn’t Miss. In this article, we are going to take a look at where Perfect Corp. (NYSE:PERF) stands against other AI news investors shouldn’t miss.
Heading into next year, the outlook for artificial intelligence is quite optimistic. It is anticipated that the AI boom will continue boosting US stocks next year, supporting economic growth. However, there is a looming risk of rising U.S. government debt levels which could threaten its upbeat 2025 forecasts at the same time. As per the BlackRock Investment Institute, technological innovations in AI will benefit US stocks more than their European peers.
READ ALSO: 10 AI News Taking Wall Street By Storm and Top 12 AI Stock News and Ratings Dominating Wall Street
Meanwhile, private markets will increasingly play a key role in financing AI-related infrastructure. The institution further stated that economic growth may cool next year, but it is anticipated that the Federal Reserve will not be able to lower interest rates meaningfully given that inflation remains sticky and above the central bank’s target.
“We’re watching very closely rate repricing dynamics, we’re also watching very closely tariffs announcements that can lead to higher inflation expectations and markets volatility”.
-Chief Investment Strategist Wei Li
The current year was marked by concerns over the high valuations of the Mag 7 stocks, and investors are keenly watching how things will turn out this year. In particular, Citigroup analysts are generally optimistic for 2025, noting how the Magnificent 7 isn’t trading at unprecedented valuations. Instead, it is the other S&P-500 stocks that are at a higher risk.
On the other hand, Goldman Sachs analysts anticipate that the Magnificent 7 will continue outperforming the rest of the S&P-500 in 2025, albeit only by 7 percentage points. This is the lowest amount that it has witnessed in seven years. In turn, UBS analysts anticipate 16% earnings growth in 2025 for AI-related companies and the broader technology sector.
“With big tech looking to spend over USD 200bn in capex this year, we believe further innovation is in store for the technology. AI is disrupting traditional industries, from video-making and music, to education, to name a few”.
– Solita Marcelli, chief investment officer Americas
Even though there is optimism around AI, some experts are also advising caution. An MIT economist Daron Acemoglu estimates that only 5% of jobs will be replaced or substantially assisted by AI within the next decade. This prediction warns of potential overinvestment and the risk of an economic downturn, similar to the dot-com bubble in the early 2000s. Looking at different analyst’s predictions, it is safe to say that while AI is poised to drive significant advancements and economic growth by 2025, adopting a balanced approach will help in fully harnessing its potential.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A fashion model in a stunning and stylish outfit leveraging augmented reality beauty and fashion tech.
Perfect Corp. (NYSE:PERF)
Number of Hedge Fund Holders: 9
Perfect Corp. (NYSE:PERF) is a leader in AI and AR-powered beauty technology solutions. On December 18, the company announced that it has launched its latest innovation: AI APIs. The tools will help simplify the integration of advanced AI-powered beauty technology into products and applications. They will provide developers with a comprehensive suite of pre-built beauty and image-processing technologies. These include generative AI APIs such as virtual hairstyles and aging simulations, as well as image-processing APIs such as AI Colorizer and AI image enhancer. The APIs will help businesses infuse their unique branding elements such as logos, colors, and designs through cutting-edge AI technology. All in all, businesses will be able to enhance customer engagement, streamline workflows, and empower innovative user experiences.
“Our AI APIs are designed to make beauty technology more accessible and impactful for companies. With these AI APIs, developers can enable more creative solutions for their customers like never before in faster, easier, and more effective ways”.
-Alice Chang, Founder and CEO of Perfect Corp.
Overall, PERF ranks 8th on our list of AI news investors shouldn’t miss. While we acknowledge the potential of PERF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PERF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
