Technology companies are optimistic about great leaps, and more revenues. Yet, meaningful revenues have to wait till 2026.

In 2024, there was a sudden fall in Nvidia shares due to a glich in its new chip. It was resolved and yet investors did not remain assured. They soon recovered sobriety. The incident demonstrated that deep within there is lurking anxiety about AI. Anytime something goes wrong, there is a knee jerk reaction.

It does not augur well for 2025. AI development has slowed down, or possibly it is crawling. AI champions are selective about the words they choose. Sundar Pichai, Google CEO, feels that the ‘low-hung fruit’ has already been picked while going to the next level we require more insightful breakthroughs.

Sam Altman was optimistic about OpenAI reaching AGI. Yet he admitted that it would not matter much as some previously thought. Of course, superintelligence will be a disruptor, but it is further away. Sora, a video generator software, is too expensive. It has some reasoning faculty but mostly it is all bells and whistles. It is an iterative model. ChatGPT had the wow factor when introduced 2 years back, but it has faded away. Apple Intelligence has not impressed the users, and the summaries produced by it are severely mediocre. Apple would have liked to be not the first but the best, but that has not happened. Anyway, AI would not become Apple’s USP.

As we move into 2025, LLMs are being loaded with more and more data, but unfortunately, the limit has been reached, and the models are not being proportionately better.

AI and generative AI were overhyped, and investors are worried about the prospects. The jury is very much out. There is a search for lucrative use cases. However, we are not advising the selling of AI stocks, You should hold them. A year may not be pan out as you wish. Maybe, you will wait for 2026. Wall Street should be prepared for AI winter.