Micron raises forecasts as AI boosts memory chip demand

UK employers plan to maintain a 3% median pay rise for the coming year amid weakening hiring intentions, especially in the public sector. One in six businesses expect to reduce staff due to AI implementation, with potential cuts exceeding 10% in some cases, primarily affecting administrative and junior management roles. The CIPD urges the government to avoid tax policies that could further discourage hiring, instead advocating for skills investment and AI workforce planning. While wage growth shows signs of slowing, the Bank of England continues monitoring pay trends for inflation impact.

EPAM Systems has raised its 2025 forecasts due to strong IT services demand. Analysts project average stock price to reach $323.60 in 2025, with estimates ranging from $219.88 to $427.32, representing a potential 101% increase from $160.91. Growth is driven by enterprise digital transformation needs, AI investment, and market expansion. Long-term outlook remains positive, with projections showing continued growth through 2029 and beyond.

Snap Inc. shares surged after announcing a $400 million partnership with Perplexity AI to integrate its search engine into Snapchat by early 2026. Perplexity will pay Snap in cash and equity, with revenue expected to start in 2026. The deal reverses typical AI integration economics, with Snap being paid rather than paying for AI capabilities. Shares jumped 15% following the announcement and strong Q3 results. The integration will enhance Snapchat's My AI chatbot, with premium subscribers gaining early access to features. The partnership gives Perplexity instant access to nearly 1 billion users while positioning Snap as a valuable distribution partner for AI companies.

Recent volatility in AI stocks has highlighted Wall Street's overreliance on a small group of technology companies. The "Magnificent Seven" tech firms, including NVIDIA, have driven most of S&P 500 gains in 2024, raising concerns about concentrated market leadership. Investors worry AI enthusiasm has pushed tech valuations too high, making markets vulnerable if sentiment shifts. Many portfolio managers are now considering diversification strategies to reduce exposure to potential downturns in the tech sector.