The stock markets of certain technology companies are experiencing a surge in optimism, fueled by the increasing demand for chatbots powered by generative artificial intelligence and the powerful graphics chips that enable their functionality.
In the past six months, investors have shown great interest in specific stocks, resulting in significant gains. The technology sector, which suffered substantial losses exceeding $7 trillion in 2022, received a much-needed boost in 2023, reigniting investor enthusiasm.
The emergence of the new generation of artificial intelligence has sparked excitement and given the technology sector the momentum it has been seeking. This breakthrough signifies a forthcoming transformation that will rapidly change our lives and shape a new world.
Experts believe that three specific technology stocks will lead this new world, benefiting immensely from the generative artificial intelligence revolution. These stocks include NVIDIA, Google, and Microsoft. It's important to note that these expectations are focused on the years ahead rather than the current moment.
The stock prices of these three companies have seen significant increases. NVIDIA's stock has risen by over 127% in the past six months, reaching around $384 per share at the time of this news. Google's stock has increased by more than 22% to approximately $123, while Microsoft's stock has risen by 30%.
NVIDIA's stock surge can be attributed to the incredible demand for its advanced graphics chips, which are essential for operating generative artificial intelligence. On the other hand, Google and Microsoft were among the first companies to embrace artificial intelligence, launching products that align with the advancements in the field.
The new wave of artificial intelligence has created a frenzy among investors. Muhammad Ali Yassin, a financial markets and investment expert, explains that people now believe technology can think autonomously. Consequently, they are actively seeking out the most powerful companies in this domain, namely NVIDIA, Microsoft, and Google, resulting in a surge in their stock prices.
Yassin acknowledges the existence of some exaggeration in the current situation. While generative artificial intelligence is economically and investment-important, expectations may be inflated, particularly in regards to NVIDIA's stock. He advises investors to exercise caution and not blindly follow the rising trend, especially considering the absence of prosperity and economic growth in America and the strong global protectionist wave. The emergence of a bubble is becoming apparent.
Yassin emphasizes that many companies are capitalizing on artificial intelligence to bolster their stock prices. However, he warns that this technology may have certain drawbacks that could lead to significant declines in associated stock prices. Therefore, investing in the technology sector should not be pursued at any cost but rather with careful consideration.
A wise investor would not solely focus on companies like NVIDIA, Microsoft, and Google but also seek out lesser-known companies with innovative and robust capabilities in the field of artificial intelligence. Yassin predicts that companies such as IBM, Amazon, and Oracle will soon join the current scene. While NVIDIA, Google, and Microsoft have enjoyed initial benefits from the new generation of artificial intelligence, the landscape will evolve as new companies enter the fold.
Banking consultant Bahij Al-Khatib believes that NVIDIA, Google, and Microsoft will indeed lead the new world, but there is a possibility of another company joining this list. The identity of this company remains unknown at present.
Al-Khatib reveals that technology labs are in a race against time, with each company striving to be the first to achieve the anticipated breakthrough. Bill Gates, Microsoft's founder, recently hinted at an upcoming invention known as the "smart assistant." If a company manages to surpass Google and Microsoft in this endeavor, they will become the fourth member of the leading stocks. However, the inclusion of a new company does not imply the exit of Google and Microsoft from the list, as both possess formidable strengths. Google excels in robotics, while Microsoft heavily invests in GBT chat.