t cht lk efficiency mandates and supply chain restrictions will likely create new classes of systemic risk as they attempt to do more with less .
t cht lk efficiency mandates and supply chain restrictions will likely create new classes of systemic risk as they attempt to do more with less .
I anticipate the acceleration of more geofencing and sovereign cloud approaches , and critical supply chains that cannot be quickly on shored will likely result in component and other shortages , delaying some critical projects .
At the same time , the push for efficiency for some governments is likely to reduce the effectiveness of supplier due diligence and governance , increasing third and fourth party risks .
Jean-Paul van Oudheusden , Market Analyst , eToro
To manage these risks and reduce the number of vendors and associated due diligence with reduced staffing levels , we will see increased focus on AI adoption and platform consolidation to reduce supply chain risk and ensure critical systems are sourced from trusted vendors .
Overtrust is another concern . Just as early GPS users drove into fields and lakes because the computer said to turn right , this combination of overtrust in AI and reduced oversight could impact everything from policy decisions and intelligence analysis , to emergency response .
This perfect storm of centralised risk arrives exactly when multiple regional wars ramp up geopolitical tensions and rivals are increasingly brazen in probing for weaknesses .
NVIDIA , Arm , TSMC , form powerful trio driving AI revolution
In 2025 it is clear that Artificial Intelligence will continue to drive market momentum and innovation . After just three trading days into 2025 , shares of major technology companies NVIDIA , Arm , and TSMC have already risen by 11 %, 19 %, and 11 %, respectively .
Additionally , ASML Holding has reported a 10 % increase , underscoring the growing significance of AI in shaping the economy . These early gains are a testament to the enduring and expanding role AI will play throughout 2025 .
The surge in AI funding shows no sign of slowing down . In 2024 , early-stage AI companies in the United States secured an impressive $ 97 billion in funding , accounting for nearly half of the $ 209 billion raised by all American start-ups combined , according to PitchBook .
European start-ups also capitalised on the AI boom , raising $ 62 billion , with a quarter of that amount directed towards AI ventures . A significant portion of
this funding came from private sources , with major players like Elon Musk ’ s xAI , OpenAI , and Anthropic leading the charge in the US .
In Europe , Mistral AI is also emerging as a key competitor . These developments further highlight the US as a global hub for AI innovation and investment .
Central to the success of AI technology is the need for immense computing power . This demand is being met by companies like NVIDIA , Arm , and TSMC . NVIDIA ’ s advanced chips , referred to as AI factories , are manufactured by TSMC based on Arm ’ s designs . Together , these companies form a powerful trio that is driving the AI revolution .
Their dominance has attracted not only end-users but also investors , with major technology giants like Google , Amazon , Apple , Meta , and Microsoft increasing their combined market capitalisation by an astounding $ 8 trillion since the launch of ChatGPT in autumn 2022 .
The AI race extends far beyond securing funding and developing hardware ; it is also about attracting top talent , fostering innovation , and creating the most conducive environments for technological breakthroughs .
According to PitchBook , Europe has already fallen behind in this race , with many start-ups in traditional sectors struggling to secure the necessary funding . As a result , investors in 2025 will need to prioritise AI to stay ahead of the curve and capitalise on its vast potential .
The data in the first table shows the 10 stocks which have seen the biggest proportional increase and
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