AI Stocks: In Case You Missed It This Week On Artificial Intelligence News
Many companies are using generative AI to help with earnings calls with analysts.
This week, artificial intelligence was in the news with a Goldman Sachs report and at the Shoptalk marketing conference. Investors are increasingly interested in AI stocks. Many companies' management continued to highlight generative AI during earnings calls with Wall Street analysts.
AI Stocks: Goldman Sachs Report
Goldman Sachs has released a deep dive report on AI stocks. The report focused on generative AI and startup OpenAI, as well as the emergence ChatGPT.
Goldman Sachs stated that software companies will increase the amount of software they sell to customers by integrating generative AI tools into their products. The brokerage also stated that generative AI will bring an additional $150 billion to the $685 billion global software market.
Goldman Sachs further stated that generative AI could have a significant impact on 300 million jobs worldwide and create a new era of productivity. The brokerage stated that this boom could ultimately increase global annual gross domestic product by 7% over a ten-year period.
However, there is still concern about the potential damage artificial intelligence could cause to humanity. Open letter signed by more than 1000 technology industry leaders, researchers, and others this week. The open letter called for an end to the development of powerful AI technologies.
Earnings calls Tout Generative Ai
Goldman Sachs also mentioned companies that used generative AI most frequently in recent quarterly earnings calls. Shutterstock (SSTK) and Microsoft (MSFT), were the top two. OpenAI's largest investor is Microsoft.
Globant (GLOB), CSG Systems(CSGS), VeriSign [VRSN], Alteryx (AYX), DHI Groups (DHX), and eGain were just a few of the others.
Sprinklr (CXM), which mentioned generative AI eight time on Wednesday's fourth-quarter earnings conference, was right behind MSFT stock, Shutterstock, and MSFT stock. Sprinklr's earnings and revenue exceeded expectations.
Google hosted a summit on cloud computing amid all the hype surrounding AI stocks. Nvidia Chipmaker (NVDA), was one of the participants in the Google Data Cloud Summit and AI summit.
Shoptalk Conference: Investors Beware
Shoptalk's marketing conference featured Alphabet's (GOOGL), Google, Amazon.com. (AMZN), and other companies promoting their AI initiatives.
Colin Sebastian, a Baird analyst, said that investors should be cautious when reviewing Shoptalk. Sebastian stated that it was amazing to see how many companies claim generative AI capabilities.
He said that it would take time to determine which haves and have-nots. We encourage investors to continue to evaluate companies using'real' AI/data science.
Timothy Arcuri, UBS analyst, in a report today that focused on the computing power required by AI. Arcuri stated that "NVDA is the market leader for AI hardware and is essentially regarded as the industry standard in AI compute in the data centre."
He said that NVDA had capitalized on its "first mover advantage" and is now well-established as the leading provider of hardware and software solutions for AI development. The IBD Leaderboard includes NVDA stock.
Since OpenAI's November launch of its ChatGPT chatbot, media coverage has increased about generative AI. ChatGPT by OpenAI is just one of many generative AI technology that could revolutionize a variety of industries. It creates text, images and computer programming code.