Not Expecting Big Market Downturn: Allspring's Patel

Group 1 - The global narrative around artificial intelligence (AI) continues to evolve, with recent stock market pressures viewed as a typical correction rather than a sign of a market collapse [1][5][6] - The demand for data centers driven by AI is strong, with companies unable to meet capacity needs and successfully raising prices, indicating a robust market rather than a peak [2][9] - The tech sector, particularly AI, is expected to experience slow growth but remains strong due to its qualitative advancements over previous decades [7][10] Group 2 - Market corrections are often influenced by Federal Reserve activities, and the current environment suggests a neutral to slightly easing stance, which does not indicate a significant downward correction [6][4] - Nvidia's stock performance has been relatively flat for the quarter, with a noted increase of 35% year-to-date, but it has lost about half a trillion dollars in market cap since October [9][10] - The price-to-earnings (P/E) ratio for Nvidia is around 40 times, higher than the average stock at 27 times, but its leadership in the sector and expected above-average growth make it a reasonable investment opportunity [10][9]