📈 Bain's big AI prediction

The AI market could hit a trillion soon, Canva could go public to take on Adobe, and our new look | [Finimize]( [TOGETHER WITH](#) Hi {NAME}, here's what you need to know for September 26th in 3:11 minutes. - Consultancy firm Bain predicted that the global AI market could reach $1 trillion by 2027 - Inside the drastic plan designed to put Europe back to work – [Read Now]( - Canva’s drawn up plans for an initial public offering 🧊 You usually have to hit the gym ice baths at 4.30am to hang out with the go-getters of tech and finance. But join our [Modern Investor Summit]( at a more reasonable hour this December, and you can quiz "The Oracle of Wall Street" Meredith Whitney, social scientist Dan Ariely, and iCapital CEO Lawrence Calcano without catching a chill. [Grab your free ticket]( The Zero Hero [The Zero Hero] What’s going on here? Consultancy firm Bain released a report on Wednesday [predicting]( that the global AI market could reach $1 trillion by 2027. What does this mean? Tech firms are conjuring up data centers to train and run AI models like there’s no tomorrow. Meanwhile, software-as-a-service providers – think Microsoft 365, Salesforce, and Adobe – are in a race to cram as much of the super-smart technology into their products as possible. So even though it’s in the early stages, the market for AI-related services and hardware hit $185 billion last year. And in a new report out this week, consultancy firm Bain forecast that the market will expand by an average of 40% to 55% every year until 2027, potentially reaching $1 trillion. Why should I care? Zooming in: Bigger doesn’t always mean better. Increasingly clever AI systems are driving the sector’s uptick – and as that intelligence grows, so does the need for bigger and better data centers. In fact, Bain believes the cost of those souped-up warehouses could jump from up to $4 billion today to an eye-watering $25 billion in five years, as their power capacity is set to expand rapidly to keep up. Those expensive projections will do little to alleviate investors’ concerns: they’re already worried that tech firms are spending too much on AI infrastructure for what they’re getting out of it. For markets: When opportunity knocks… Besides straightforward Big Tech plays, investors have found alternative ways to get in on the AI action. One is copper: already in high demand for its role in many green industries, the metal is needed to build, power, and cool data centers. So much so that mining giant BHP expects data centers to account for up to 7% of total copper demand by 2050, up from under 1% today. Another is utilities: data centers’ energy usage is predicted to double by 2026 from 2022’s levels, which would charge up the bottom lines of utility companies. You might also like: [This stock could be the next big AI play.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=The Zero Hero&utm_campaign=daily-global-26-09-2024&utm_source=email) 👀 Are you checking us out? We've got a new look – and from the expression on your face, we think you're into it. Keep your eyes up here, though: [tell us what you think](. (Be as charming as you like.) [Rate Us]( TODAY'S INSIGHT The Plan To Fix Europe’s Existential Crisis – And One Sector That May Reap The Rewards Stéphane Renevier, CFA [The Plan To Fix Europe’s Existential Crisis – And One Sector That May Reap The Rewards]( After trailing behind the US for over two decades, Europe’s now facing a make-or-break moment. Deep structural issues continue to threaten the region’s economy, social welfare, and independence. There’s no sugarcoating it: without serious reform, [Europe risks a decline]( from which it might not recover. Well, Mario Draghi – the former Italian prime minister and former European Central Bank president – has just published a report [pinpointing]( the root causes of this troubling trend. And not just that: he’s pitched [a plan to fix them](. I’ve taken a look at how Draghi’s plan could [make European companies a more appealing proposition](, and I’ve taken some notes from [Goldman Sachs]( in the process, too. That’s today’s Insight: [how a new drastic plan could put Europe back on the world stage](. [Read or listen to the Insight here]( Make the most of your options, so they don’t get the best of you When the going gets tough, the tough get to grips with [options strategies](. After all, the more volatile markets are, the higher options prices tend to rise. Thing is, these are complex, risky trades – so [you need to know how to pull them off](. Our [latest guide](, made with IG, tells you everything you need to know about selling options as a beginner. (If you’re more advanced, sit tight: they only get more technical from here.) You’ll discover the [different types of options you could sell](, see how the process would play out, and find out how you could make income through “premiums” if your trades are done right. [Check Out The Guide]( Drawing A Buzz [Drawing A Buzz] What’s going on here? Design platform Canva is sketching up an initial public offering (IPO), aiming to steal some attention from creative software rival Adobe. What does this mean? Canva’s nursing a humble $26 billion valuation these days – a hefty downgrade from the $40 billion it boasted in 2021. But if the Australian company pulls off a successful IPO, the resulting cash could fund shiny new products and more purchases of other firms – bets that could restore its former glory. And if Canva lists in the States, as hinted, that would set the scene for a face-off with American rival Adobe. The $230 billion behemoth boasts a 70% share of the creative software market, putting Canva’s 4% to shame. Why should I care? For markets: A freemium listing. Canva’s free tools have won over an impressive 190 million monthly users, double its count from 2022. And the company’s sales picked up by 50% last year, too – although most of Canva’s cash still comes from individual subscriptions, rather than more lucrative deals with businesses. So to score a bigger chunk of the market, Canva’s betting big on AI. The company snagged generative AI startup Leonardo.ai in July – mere months after picking up Affinity, a rival to Adobe’s Photoshop and Illustrator software. The bigger picture: It’s safer stateside. The US market is the go-to spot for international company listings. In Europe, the Middle East, and Africa, IPO proceeds were down 39% last year, while the Americas saw an uptick of 155% with around 132 deals on US exchanges. You can see why they call it the land of opportunity. A US listing comes with benefits that some foreign markets just can’t offer – not least a bigger, richer pool of potential shareholders who can help firms fetch higher valuations than they’d get elsewhere. You might also like: [These software stocks could benefit most from the AI wave.]( Copy to share story: [( 🙋 [Ask a question](mailto:questions@finimize.com?body=Ask us a question: Where are you writing from? Let us know and we'll mention it when we reply.&noapp=true&subject=Drawing A Buzz&utm_campaign=daily-global-26-09-2024&utm_source=email) QUOTE OF THE DAY "Thinking: the talking of the soul with itself." – Plato (a Greek philosopher) [Tweet this]( 💡 We'd look good together Our [million-strong community]( is filled with active, switched-on investors, constantly looking for tips and tricks that will help them increase their net worth. So if you’re looking to [promote a finance-related product or service](, find out how we might pair up in a partnership you can bet on. [Drop us a line](. [Get Your Name Out There]( 🎯 On Our Radar 1. Ski whizz. Forget the stairs, [this house]( has its own gondola. 2. ESG investing isn’t just a feelgood theory. Here’s how you could [put principles into practice](.* 3. Not to everyone’s taste. Inside the whacky world of [food brand collaborations](. 4. There's nothing like staying active. Here's how [different active investing strategies]( could play out for you.* 5. Timing is everything. How to find supermarket fruit that's [perfectly ripe](. When you support our sponsors, you support us. Thanks for that. 🌍 Finimize Live 🤩 Grab your tickets... All events in UK time.♟️ [Game-Changing Strategies For Options Traders](: 5pm, October 15th 🚀 [2024 Modern Investor Summit](: 2pm, December 3rd Thanks for reading {NAME}. If you liked today’s brief, we’d love for you to share it with a friend – here’s a link: [Share this email]( You stay classy, {NAME} 😉 Any thoughts on today’s email? [Give feedback]( Want to advertise with us? 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