Reports suggest as much as $3 trillion is waiting on the sidelines to be invested in tech’.
AI FOMO
The reasoning is that AI is driving a fear of missing out (FOMO). We could very well be experiencing the fourth industrial revolution right now, and it is AI-driven. Strategically, companies can’t just sit around and wait. There’s a window where if they don’t join in or realise the potential and grab the opportunity, they’ll miss out.
IPO’s
Three of the biggest initial public offerings (IPO) in the tech’ sector in nearly two years raised some $6 billion collectively in less than a week. Nvidia has attracted much attention with the AI driven interest it has created recently.
While a handful of tech IPOs and one big acquisition wouldn’t have been much cause for celebration in previous years, they are a welcome return after the drought of pandemic-era hit investment.
The IPO market for tech was effectively shut down until Arm Holdings, Instacart and Klaviyo opened the investors door again. Merger activity such as that driven by Microsoft Corp., OpenAI ChatGPT and Activision Blizzard Inc. is helping to lift up the appetitie for investment again. And it’s pretty much AI induced.
Money ready to go
Some analysts suggest there is $3 trillion sitting on the sidelines ready to invest, mostly held by Big Tech and private equity companies. The fascination with artificial intelligence (AI) and fear of missing out (FOMO) will create massive AI led tech investing opportunities. Everyone will want a slice of this cake.
This could very well be the biggest transformational spending wave that we’ve seen in years and certainly since the internet arrived in 1995.
Just look out for that ‘bubble’ again – it will pop! But much money will be made before that happens and then again after.