The global labor shortage, estimated to reach 80 million workers by 2030, is expected to significantly boost technology stocks, according to Tom Lee, the head of research at Fundstrat Global Advisors.
What Happened: Lee predicts that the technology sector’s share of the S&P 500 will increase from its current 30% to 50%, reported Business Insider. This projection is based on the potential for artificial intelligence to enhance productivity and address the impending labor shortage.
Lee’s comments come in the wake of NVIDIA Corp‘s (NASDAQ:NVDA) remarkable first-quarter earnings report, which led to a 10% surge in the company’s stock. He believes that the AI narrative is still in its early stages and will drive a shift from traditional wage spending to increased investment in AI technology.
“The prime age workforce is growing slower than the total world population and by the end of the decade that gap is around 80 million workers. So unless there is a productivity boom which is what AI will do, it’s going to create a lot of ...