The stock market will be driven by AI for the next ten years, predicts former Cisco CEO.

• John Chambers, former Cisco CEO, predicted that artificial intelligence will drive the stock market for the upcoming ten years, as he stated on CNBC.
• Since the end of 2022, Nvidia's stock has increased fivefold and the Nasdaq Composite has reached new record highs.
• "The stock market's dramatic movement in the past year can be attributed to AI, according to Chambers," said Chambers.

John Chambers, former Cisco CEO, predicted that artificial intelligence will drive the stock market for the upcoming ten years, as he stated on CNBC on Wednesday.

JC2 Ventures founder and CEO Chambers stated that AI will decide the tech industry's victors and vanquished, and AI-related stocks are expected to outperform non-AI stocks by three to one in returns.

At the VivaTech conference in Paris, Chambers stated to CNBC's Karen Tso that AI will dominate the stock market for the upcoming ten years.

"If you consistently invest in a portfolio of AI stocks over the next five to 10 years as an investor, you will likely perform well."

In the first quarter of 2021, 38% of venture capital in the U.S. was invested in AI stocks. Chambers predicts that this percentage will increase to "way over" 50% in the future. Meanwhile, 12% of venture capital went into AI stocks in Europe during the same period.

The demand for AI-related products has caused a fivefold increase in the stock price of an AI chipmaker since the end of 2022, with more than a doubling in 2023.

Nvidia's sales are a good indicator of the overall market trends in AI, just as Cisco's sales reflect the state of the internet market, according to Chambers.

Maurice Lévy, Publicis chairman, emphasized that an AI transformation will occur, as technology will eliminate some jobs but also create new value-added roles.

"Lévy stated on CNBC on Wednesday that they anticipate a net positive outcome and not a net negative. He added that companies that adopt AI will benefit from doing it early and will create more jobs with added value."

On Tuesday, the Nasdaq Composite and the rose to new highs, as investors anticipate Nvidia's earnings. This year, the Nasdaq Composite has increased by approximately 12%.

""The stock market has experienced significant fluctuations in the past year due to AI, while European stocks and the FTSE have been positive in the last six months," Chambers stated."

"AI will revolutionize your life, with power five times greater than the internet."

- Karen Gilchrist contributed to this report.