Reported 11 months ago
A Guggenheim analyst's note highlighted a discrepancy between the booming AI sector and corporate IT spending, indicating a 'new normal' where software companies might not see reaccelerated budget growth. Despite the AI spending boom and Nvidia's surging sales, the expected increase in IT budget growth remains similar to last year's figures. Companies seem hesitant to invest in AI due to costs and unclear utility, with many waiting to see tangible benefits before increasing spending. While some analysts predict 2025 as the year AI revenue will materialize, companies like Microsoft and Alphabet continue to invest in AI, although the payoff timeline is uncertain.
Source: YAHOO