Introduces John Chambers and frames the key questions: Is AI spending excessive? Will revenues materialize? Will AI disrupt/destroy businesses and jobs?
Becky
John Chambers
AI has tremendous staying power and will determine markets, profitability, and productivity for the next decade. It's not a bubble; we will see acceleration. Productivity gains (2.7%) are real and will likely double. There will be disruption between winners and losers, including within the Magnificent Seven.
Questions the sustainability of massive AI capex ($650B+) and whether returns will justify the spending.
Becky
John Chambers
Spending will yield returns, but not uniformly. Infrastructure players (AMD, Broadcom, NVIDIA, Bloom Energy, startups) are well-positioned for growth. More failures will occur; safety in the middle is gone.
Asks about ecosystem fragility: Could the failure of one major company cause a broader market pullback?
Becky
John Chambers
If a major ecosystem player fails, it will cause a negative reaction and take down part of its ecosystem. However, the overriding AI trend is so strong the market will come right back. The market will be volatile ('roller coaster year') but the accelerating growth trend is inevitable.