Some of the AI related tech stocks have taken a small dip recently after strong rises over the last few months. I read an article a couple of days ago suggesting that MSFT might struggle to break through it’s all time high share price (set a couple of years ago). However, I’m not sure those doubting the recent rises (or suggesting its all just a bubble) fully realise the potential revenue that AI may generate. It isn’t going to be instantaneous but AI will become pervasive (perhaps unfortunately).
One article this week refers to a worldwide survey of business - “The study, which was released Thursday, shows that 93% of companies around the world plan to increase their artificial intelligence spending in the next twelve months”
Generative AI Spending To Increase At 93% Of Companies, But US Could Fall Behind: Lucidworks Study Reveals - Microsoft (NASDAQ:MSFT) - Benzinga
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Companies such as Nvidia already have a lot of future revenue priced into their share price. There are some big companies that will perform well but the massive potential rises in share price are the small/mid size companies that are successful. The problem will be that many fail or develop great tech only for bigger companies to dominate because of sheer size or the small cap will just get bought for their tech. It is going to be difficult to spot the small cap companies that will really do well.
Aside from the actual tech companies I wonder whether some other companies will do well - eg training and consultancy. There are some consultancy stock that has been hit recently because of concern of recession and fear that companies will cut back on consultancy spending. However many companies know virtually nothing about AI (not sure most consultancy business know much either but they may bs there way into deals) so I wonder whether there may be a few surprised in consultancy revenues. Also I’ve just seen an add for Udemy (I don’t hold so no vested interest) saying they have over 8000 students on their chatGPT course at the moment and I guess there will be a lot of people wanting to put AI on the cv