Veteran market professionals of previous crazes like the one in 2017 sparked by the use of AI in their names is reminded of the blistering rallies in companies that have AI in their names. The frenzy fizzle and stock gains disappeared in that period, and there was a rush for exposure from companies and traders.
We've had tons of episodes like this before, where a group gets hot and everyone just piles into everything related to it, the firm s chief market strategist said. It will be a wild ride for everyone who is betting on names and tickers. Since it launched late last year, the popularity of OpenAI LLC's ChatGPT tool has generated a lot of excitement about the potential use cases for AI. Microsoft Corp. is investing $10 billion in OpenAI, which needs funding and cloud computing power to run increasingly complex models. Microsoft plans to use OpenAI models in current and future products. Nvidia Corp., a semiconductor maker, is a beneficiary of greater investment in AI since it dominates the market for graphics chips that provide the computing power behind the software models, according to Wall Street analysts. Its shares rallied 34 per cent in January, Nvidia's best month in almost six years.
Baidu Inc., China's largest search engine company, is also jumping into the fray. The company plans to roll out a chatbot service similar to ChatGPT, according to a person familiar with the matter, though the news this week didn't lift the stock price. O Rourke said he wouldn't be surprised to see companies add AI to their names or jump in secondary stock offerings as executives try to capitalize on the euphoria until the bubble bursts. He said it was still early stages. There will probably be three times as many as many moving now for all the names and tickers in a month. With the help of Subrat Patnaik and Matt Turner.