[On Site] NYSE Vice Chairman: "AI Cycle Will Impact All Industries... Cannot Be Underestimated"

Michael Harris, Vice Chairman of the New York Stock Exchange. New York, USA ? Special Correspondent Yoonju Hwang

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Michael Harris, Vice Chairman of the New York Stock Exchange (NYSE), stated on April 22 (local time) that "this AI cycle will impact virtually every industry."

After concluding a press briefing with foreign correspondents at the NYSE in Manhattan, New York, Harris told The Asia Business Daily, "The AI boom has a very unique dynamic," and made these remarks.

In response to a reporter's question on whether the heightened expectations for AI in the U.S. stock market are leading to concentration or risk in specific stocks, he replied, "We need to watch a bit longer to see how that unfolds."

He continued, "Unlike previous supercycles, this AI cycle will influence nearly every industry. So it's difficult to simply call this 'overinvestment.' In terms of hardware and infrastructure development, the overall scale of investment in AI cannot be underestimated."

Vice Chairman Harris expressed a reserved stance regarding some concerns that the AI investment boom is a 'bubble.' He responded to a reporter, "(Whether in the U.S. market or the Korean market, the impact of AI investments) will be tremendous. Therefore, it seems a bit premature to call the current situation a general 'bubble.'"He added, "Some companies may experience ups and downs, but the influence of this sector, which is being built across all industries, is enormous."

New York Stock Exchange floor. New York, USA - Photo by Yoonju Hwang

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Vice Chairman Harris maintained an optimistic outlook for the IPO market in the U.S. stock market this year, despite geopolitical risks. He said, "There may be a high inflation environment, but the market is quite robust. The U.S. stock market and other markets have also shown strong trends. The market is currently near historic highs. The next 6 to 12 months are expected to be very active."

This year, superstar AI companies such as OpenAI and SpaceX are preparing for IPOs in the United States. Currently, the NYSE is competing with the Nasdaq to attract these companies to list on their exchange.

When asked about his views on U.S. stock price formation reflecting a soft landing despite inflation and Middle East risks, Vice Chairman Harris assessed that there is not a significant gap between real business activities and the market.

On this day, the New York stock market closed higher across the board as the ceasefire between the United States and Iran was extended. Notably, despite geopolitical instability, the S&P 500 and Nasdaq indices set new record closing highs on this day.

He said, "The market is highly efficient," adding, "I feel that any risk factors anticipated by investors are already reflected in the prices. From our perspective, we do not feel any discomfort." He went on to say, "Rather, these aspects are directly reflected in IPO pricing and in the secondary market. At present, the situation is fine."

According to the NYSE, Vice Chairman Harris is a financial services expert who has experience in capital raising, restructuring, and strategic work, and is currently responsible for attracting major global companies to list on the NYSE.

Vice Chairman Harris has shown deep interest in Korea's efforts to improve its capital markets. Last month, he visited Korea and met with senior Korean government officials, including Prime Minister Kim Minseok, for the first time.

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