EQIX - Equinix: Owning The Infrastructure Of The AI Revolution

2024-06-17 15:41:34 ET

Summary

• AI technology, such as GPT4, is showing potential to outperform human financial analysts in forecasting earnings accuracy.
• AI-driven investing strategies could potentially disrupt traditional hedge fund managers and generate significant returns without directional market bets.
• Equinix Inc., a leading data center REIT, stands out as a compelling investment opportunity with strong fundamentals, dividend growth, and exposure to AI-driven trends.

Introduction

Artificial intelligence is coming for our jobs.

According to Bloomberg's Aaron Brown , the latest GPT4 technology could beat financial analysts when it comes to forecasting earnings.

The researchers found that GPT4 could predict with 52% accuracy whether next year’s earnings would be up or down — less than human analysts or statistical prediction methods. However, when they used a “chain of thought” technique that tells GPT4 to think like a human financial analyst , accuracy jumped to 60%, better than human analysts and about equal to statistical forecasts. - Bloomberg (emphasis added)

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