The market's enthusiasm for AI-related stocks has been significant since 2023, with the"Mag 7" stocks surging by an impressive 44.7%. However, this rapid rise has sparked debates about whether AI is merely a bubble reminiscent of the dot-com mania or if it truly represents the driving force behind the next industrial revolution.
Similarly, the forward P/E ratio, which currently stands at 23, includes a 4% boost from AI, translating to 0.9 additional points. In terms of EBITDA, AI is expected to boost growth by 2.1 percentage points, with the market projecting a 16.2% increase compared to 14.1% without AI influence.
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