AI Market to Hit $990bn by 2027

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AI Market to Hit $990bn by 2027

The global market for artificial intelligence-related (AI) products is set to surge to $990bn by 2027, according to Bain and Company’s ‘Global Technology Report’, released Wednesday. The market, encompassing AI services and hardware, which was worth $185bn in 2023, is expected to expand annually by 40–55%. The rise will be supported by larger AI systems and data centers. On that note, following a meeting with the Biden administration, Microsoft-backed [MSFT] OpenAI has advocated for building 5GW data centers in the US, each requiring power equivalent to five nuclear reactors, according to Bloomberg.

Nvidia Climbs as Blackwell Drop Draws Near

The Nvidia [NVDA] share price climbed Tuesday as the AI leader prepares to start shipping its Blackwell GPU in Q4. It is thought that some 450,000 units will be produced in the quarter, potentially equivalent to revenue of $10bn, Seeking Alpha reported. At the Goldman Sachs Communacopia and Technology Conference earlier this month, CEO Jensen Huang said “the demand on it is so great ... and so the intensity is really, really quite extraordinary.” Demand for Nvidia’s Hopper GPUs also remains strong.

Microsoft in Mexico

Microsoft announced a $1.3bn investment over the next three years to expand its cloud computing and AI infrastructure in Mexico. CEO Satya Nadella revealed the plan at an event in Mexico City, highlighting the company’s focus on improving connectivity and accelerating AI adoption among small and medium-sized enterprises (SMEs). The initiative aims to benefit 5 million Mexicans and 30,000 SMEs, underscoring Microsoft’s commitment to fostering technological growth in the region.

DoJ Probes Software Firms

The US Department of Justice is investigating SAP [SAP] and Carahsoft Technology for allegedly conspiring to overcharge government agencies, Bloomberg reported. This follows an earlier incident where SAP paid $222m to resolve bribery investigations. Carahsoft’s offices were searched, but the company said the investigation involved a former business partner. The SAP share price slumped on the news.

Citi Picks: Long Crowded Stocks

Citi Research analysts have highlighted five stocks within each of the 11 US sectors with the highest long crowding score; according to Seeking Alpha, crowding can be defined as “something that often happens in the latter stages of the life cycle of a stock, where the market has a consistent view on the stock – a risk factor.” The top five in the IT sector are: Similarweb [SMWB], with a crowding composite rank of 100%; Zeta Global [ZETA], at 99.5%; Monday.com [MNDY], at 98.8%; Shopify [SHOP], at 98.3%; at Life360 [LIF], at 97.9%