ChatGPT, Other AI Software Show Tremendous Returns on Investment for Big Tech
Today we are talking about the high-tech, high-dollar stocks that stretch from Silicon Valley to Seattle to the New York Stock Exchange. For years these locations and businesses started up the digital revolution. And the money to be made seemed unimaginable.
In time we found out that not all companies were hugely successful. Not all new ideas will really produce the return on investment that they promise.
So it is somewhat ironic watching the growth of AI and how it directly affects the value of high-tech stocks. The corporations at the top have lost a lot in the price of their stocks over the course of 2022. But it looks like 2023 will be a much better year for Alphabet, Amazon, Nvidia and the other major players in AI. According to investors.com, the time is getting ripe for these stocks to roar back because of their AI technologies
In general, stocks that use AI technology to improve products or gain a strategic edge are on the upswing due to investor interest. However, the article warns that poor-performing companies may call themselves AI companies if they have any AI tech at all.
Generative AI Wars
The chatbot technology that is being offered now is a game changer. While some of the software has been around for a while, it wasn’t being used to answer questions. These programs can hold conversations with you. They were also being asked to pass law exams, create action hero stories and write a hit pop music song. And so the bots like ChatGPT and Chatsonic did what was asked of them. One bot even won an art contest in Colorado.
“We see (generative) AI becoming ‘table stakes’ for most software companies,” said Evercore ISI analyst Mark Mahaney in a report. “This generally favors the bigger companies with deeper pockets and access to more data.”
It is fair to say most managerial-level employees are somewhat familiar with AI and how it is remaking our world. But not everyone is taking advantage of AI. The majority of organizations are still experimenting with AI technology, said an Accenture (ACN) study. Only 12% are using AI tools at a maturity level that achieves a strong competitive advantage, according to Accenture.
The Tech Rebound
Some AI stocks like Intel took some hits in the stock market in the last few months. But as always, what goes down does come back up. Tech stocks are regaining value.
“Venture capitalist Marc Andreessen once observed how “software is eating the world” by remaking industries through automation. In the same way, artificial intelligence is expected to modernize software. Amid a shortage of software engineers ,low-code programming tools are making it easier for business units to develop AI applications. DataRobot is part of a new wave of AI startups bringing low-code tools to market.
Now the AI software market is expected to jump 21.3% to $62.5 billion in 2022, forecasts market research firm Gartner. The research group adds the worldwide AI semiconductor market will grow to more than $70 billion by 2025, up from $23 billion in 2020.”
The article describes how the big names in AI are investing in even more AI. It’s clear the expansion in AI products and the abilities these algorithms have promises to explode for investors. The values they are predicting for this new AI are staggering.
read more at investors.com