Based on company statements, the hype around artificial intelligence only intensifies.
The number of press releases mentioning “artificial intelligence” or “AI” rose to 533 S&P 500 companies in the fourth quarter, according to Dow Jones data. This is up from 360 cases in the third quarter and 353 cases in the same period last year. Adding in regulatory filings and conference call transcripts, mentions of AI rose to 953 in the fourth quarter, more than in any of his previous three months.
Based on company statements, the hype around artificial intelligence only intensifies.
The number of press releases mentioning “artificial intelligence” or “AI” rose to 533 S&P 500 companies in the fourth quarter, according to Dow Jones data. This is up from 360 cases in the third quarter and 353 cases in the same period last year. Adding in regulatory filings and conference call transcripts, mentions of AI rose to 953 in the fourth quarter, more than in any three-month period in the past two years.
The AI phenomenon has caused stocks of companies like Nvidia and Palantir to soar. If companies can leverage it to improve productivity and profits in the coming years, it could spread to other industries outside of technology. Even companies like McDonald’s like to talk about how AI will transform their operations.
Of course, with the rapid rise of AI as an investment theme, some worry that it could become a big deal at any moment. Louis Vincent Gabe wrote last week that AI has become the dominant market narrative, with the belief that China’s economy will continue to decline.
“Standing in front of a runaway story is usually as meaningful as standing in front of a runaway train,” Gabe wrote in a Feb. 15 memo. “Still, it makes sense for investors to hypothesize about what could change these narratives.”
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He said disappointing sales, tighter regulation, rising energy prices or rising geopolitical tensions, such as a war between China and Taiwan, could end the AI rally. Stated. Valuations for many AI stocks already appear to be very high, he noted.
For now, investors are still being rewarded for hopping on the AI wagon. The next big event will be when Nvidia releases its financial results later this week.
Email Brian Swint at brian.swint@barrons.com.
