Artificial Intelligence will remain a key factor driving the equity markets in 2025. That’s the sentiment echoed by JPMorgan (JPM) strategist Dubravko Lakos-Bujas, who believes the S&P 500 will power through the 6,500 level. The sentiments come against the backdrop of one of the longest bull runs in the market, which has seen the S&P 500 gain 26% in the year to date.
Market Gains on AI
AI darling, Nvidia (NVDA) has rallied by 176% over the year, while Meta Platforms (META) has gained by 62% year to date amid the artificial Intelligence-driven trades. While a resilient economy and accommodative monetary policy have had a hand in strengthening investor sentiments about equities, the AI frenzy has emerged as one of the most important catalysts.
The momentum is expected to continue in 2025, with Dubravko expecting the US to remain the global growth engine amid the AI push. The sentiments come as investments around AI are expected to hit record highs of $240 billion in 2024. Tech giants have been investing in data centres and chips as they look to take advantage of the revolutionary technology to strengthen their products, services and competitive edge.
The equity market will not be the only beneficiary of the AI frenzy. According to JPMorgan CEO Jamie Dimon, future employees will end up working a day and a half less thanks to artificial Intelligence. In addition to reducing the workweek from five to three and a half days, Dimon projects that employees may live to be 100 years old in the future.
The largest bank in America already has thousands of employees who utilize technology. Over time, artificial Intelligence will change because it is a “living breathing thing.” JPMorgan may use the technology for a wide range of purposes, including trading, research, hedging, and errors, to mention a few. This may demonstrate concerns that AI will replace human workers in the workforce.
Apple AI Push in Siri
Meanwhile, Apple (AAPL) is rushing to create a more conversational version of its Siri digital assistant In order to catch up to OpenAI’s ChatGPT and other voice services. More sophisticated large language models, or LLMs, are being integrated into Siri as part of the revamp. The revamped digital assistant will be able to process more complex requests quickly.
Apple is working to become a leader in artificial Intelligence, and part of that effort is updating the 13-year-old Siri service. Although the company unveiled its much-discussed Apple Intelligence platform last month, it still lacks many of the features that other tech giants have to offer.
The updated Siri will use new Apple AI models to communicate more like humans and perform tasks like ChatGPT and Google’s Gemini. Additionally, it will use App Intents more extensively, enabling more accurate control over third-party apps. Additionally, the program will have access to Apple Intelligence features like text writing and summarization.
Apple AI Boost
According to Wall Street analysts, there are multiple reasons why iPhone users will embrace artificial Intelligence. Morgan Stanley analysts expect consumers to pay more for artificial intelligence capabilities and thus offer much-needed support to Apple’s services division.
The rollout of more artificial intelligence features is expected to be one of the catalysts fuelling the Apple products upgrade cycle. IPhone upgrades are expected to improve by 3 to 10 points, implying 271 million to 313 million iPhone shipments in 2026.
