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Steve Cohen, the chairman and CEO of Point72, reiterated his optimistic outlook on artificial intelligence during a recent discussion at the iConnections Global Alts conference held in Miami Beach, Florida, on April 3, 2024. Despite the significant fluctuations observed in the market, Cohen believes that the impact of AI will unfold over a prolonged period.
“This is a theme that will span 10 to 20 years,” Cohen stated. “It will influence every aspect of how people live and conduct business.” He emphasized that we are still at the early stages of a substantial transformation that will reshape both the economy and the global landscape. “To overlook this shift would be a critical error,” he added.
Cohen’s remarks come in the wake of a sharp decline in U.S. tech stocks spurred by the emergence of DeepSeek, a rapidly growing AI startup from China. The company’s competitive algorithms produced at a fraction of the usual expense disrupted investor confidence in the prevailing AI narrative, particularly surrounding Nvidia’s semiconductor technology, which has been crucial to AI advancements.
Point72’s CEO acknowledged that the ascent of AI may not follow a linear trajectory. He highlighted that misinformation and a lack of clarity about AI investments can amplify market volatility. “The market will experience ups and downs,” he noted. “There will be periods of significant advancements followed by quieter phases. Doubts will arise, as seen recently. Many investors may not fully understand the nature of their AI investments, leading to susceptibility to misinformation.”
This uncertainty was exemplified by Nvidia’s stock, which plummeted by 17% on Monday, erasing nearly $600 billion in market value—marking the largest single-day decline for any U.S. company. However, the stock rebounded by 7% the following day.
In a strategic move to harness the potential of AI, Cohen announced that Point72 has successfully raised $1.5 billion for a new hedge fund dedicated to investments in the AI sector.
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