According to reports, the flames of the generative artificial intelligence war are burning more and more.
This week, the resulting investment enthusiasm began to spread to two tech heavyweights, Microsoft and Alphabet. While they are all investing heavily in technology, investors have previously favored smaller companies with more hype.
Shares in parent company Alphabet tumbled 7.7% on Wednesday when Google accidentally overturned its Feb. 6 demo of ChatGPT rival Bard, generating erroneous results. The selling pressure on Thursday did not ease. The stock once fell 5.1% in intraday trading that day. In just two days, the market value evaporated by nearly 170 billion US dollars (about 1.15 trillion CNY).
You know, after Alphabet released a financial report that missed expectations, the stock fell only 2.8%, which is enough to show how much investors attach importance to the artificial intelligence arms race.
“For a stock like Google, a drop of this magnitude just shows that investors simply don’t look at the fundamentals,” said Matt Maley, chief market strategist at investment firm Miller Tabak + Co.
Just as Google plummeted, Microsoft was sought after by the capital market, which can be described as a double sky. The stock jumped 4.2 percent on Tuesday after the company explained how it would integrate OpenAI’s ChatGPT technology into its Bing search engine. But analysts seem less enthusiastic, with Morgan Stanley arguing that getting consumers to change their search and browsing habits will be difficult and costly.
Until this week, the artificial intelligence hype in U.S. stocks was largely confined to Nvidia, which develops chips that power complex calculations for artificial intelligence programs. In addition, some small companies with “AI” in their company names have also become the target of speculation. For example, C3.ai’s stock price has doubled this year. Meanwhile, both Microsoft and Alphabet have trailed the Nasdaq 100 over the same period.
Chinese Internet companies such as Baidu, Alibaba and NetEase have also announced that they will expand the scope of artificial intelligence applications, spurring stock prices to rise.
Bill Stone, chief investment officer at Glenview Trust, said that despite Alphabet’s setback, it’s too early to tell a winner from generative artificial intelligence and its associated business model.
“People obviously worry that Alphabet is going to lose its dominance in search, but that’s purely because it’s so dominant, and there’s too much interest behind the search business, but they still have a lot of tools,” he said. shares of Microsoft and Alphabet, and also believe that both companies have the ability to become leaders in this space.”
