Stocks associated with the technology are soaring as investors look for ways to benefit from artificial intelligence, which is the trendiest issue on Wall Street.
The OpenAI ChatGPT, which Microsoft (MSFT) supports, is what's causing the AI craze. The chatbot, which was unveiled in November, has proliferated online and spurred debates about workplace productivity.
In the first half of this year, the stock of AI developer C3.ai (AI), whose clients include Bank of America, Shell, and 3M, has increased by more than 100%.
Cathie Wood, the inventor of the Ark Innovation ETF, advises investors to take into account how firms employ artificial intelligence for their operations (ARKK).
The greatest productivity rise in human history will be made possible by AI, according to Wood. "We anticipate that the productivity increases would amaze and stun."
However, she continued, "Those organizations who do not adopt this quickly enough are likely going to lose market share."
The earnings season this year has been liberal with allusions to AI.
Mark Zuckerberg, CEO of Meta (META), stated during the company's earnings call on Wednesday night that the social media behemoth is "deploying AI solutions to allow our developers to be more productive."
CEO Arvind Krishna stated on the most recent earnings call for IBM (IBM) that by 2030, "AI is anticipated to contribute $16 trillion to the global economy."
"We have been co-creating with several clients to implement AI at scale," he continued.
AI-loving investors are also putting pressure on cybersecurity stock prices. Network and security software providers Palo Alto Networks (PANW) and Crowdstrike (CRWD) have both enjoyed rises year to date.
According to Janice Quek, an equity analyst at CFRA Research, "Faced with shortages in IT people and knowledge, adopting AI-enhanced software has proven an efficient solution to address cybersecurity concerns for many firms, while enhancing protection efficacy and decreasing burden."
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