Financial markets/economy

Artificial intelligence: a future technology rocking the markets

Posted by MoneyController on 19.05.2023

Artificial Intelligence (AI) could prove to be one of the most important technological innovations of recent decades, with a wide range of applications and a large market. In the markets, it is seen as a disruptive technology with the potential to generate large profits, but also with the potential to cause significant stock market volatility.

AI is also a hot topic in finance

Thanks to the success of ChatGtp, AI has become one of the most talked-about topics in the economic and financial spheres in recent months: what will be the biggest applications of AI and which companies will benefit most from this heralded revolution? To a certain extent, the stock markets are trying to answer this question, as investors tend to invest in the companies they consider to be the most promising. This is the case with Nvidia, which has gained almost 110% on the stock market since the beginning of the year thanks to its importance as a provider of artificial intelligence hardware and software technologies.

Microsoft's growth and Google's recovery

Obviously, Microsoft, the financier of OpenAI (the start-up that invented ChatGtp), has also benefited from this fortunate choice on the stock market, rising 28% since the beginning of the year. But this scenario is also made up of strong downward corrections and market fluctuations. As Giulia Ciampanelli recalls in 'La Repubblica', after Alphabet (Google) launched its Bard chatbot, the company lost up to 100 billion dollars in value in a single day due to the disappointment caused by the results. However, these losses were quickly recouped and since the beginning of the year Alphabet has gained more than 34%.

Cases of downward corrections and volatility

 Among the companies most affected by the fortunes of AI software, Ciampanelli continues, is Chegg, an IT company that provides services related to education and training: since the beginning of the year, its share price has fallen by almost 63%. On the other hand, there are companies that have seen a significant increase in value but have been subject to strong stock market volatility: this is the case of C3.ai, which tripled in value between January and April, then halved before returning to growth (+142% since the beginning of the year).

Some AI stocks fluctuating in the markets

At the end of March, Forbes included Advanced Micro Devices and Micron Technology in its list of the top five AI companies (alongside Alphabet, Microsoft and Nvidia). These companies have risen by almost 63% and 29% respectively since the beginning of the year, but have been subject to considerable volatility. A similar discourse could also be made for two companies that deal with data management while also applying AI, such as Alteryx and Snowflake, down -21% and +24% respectively since the beginning of the year, not without some price fluctuations.

Read also:

The broad range of investments in technology and innovation

The disruptive growth segment offers very attractive pricing

AI: investment opportunity or threat to humanity?

Is artificial intelligence the next bubble?

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