As we near the end of 2023, it’s becoming increasingly clear that the stock market rally is being propelled by the advancement of artificial intelligence (AI). Two companies in particular, AMD and Google, are leading the charge with their recent AI announcements.
AMD, a semiconductor company, made headlines when it unveiled a new line of AI chips to rival industry heavyweight Nvidia. The response was overwhelmingly positive, with analysts praising the innovation and major players like Microsoft and Meta Platforms expressing interest in purchasing AMD’s AI accelerator. In fact, Microsoft saw its stock increase within a buy zone as a result of its involvement in the AI industry.
But AMD’s success didn’t stop there. The company’s stock soared above multiple buy points, surging nearly 10% and reclaiming key chart levels. This impressive performance is a testament to the growing importance of AI in the stock market and the potential it holds for companies that are able to harness its power.
Google, on the other hand, took a slightly different approach to AI. The tech giant unveiled its Gemini large language model, which will be used to power its Bard chatbot and more. This move puts Google in direct competition with Microsoft, OpenAI, and other players in the field. Despite a slight dip in share prices immediately after the announcement, JPMorgan recognized Gemini as a “significant innovation” and Google’s stock subsequently jumped 5.3%.
The success of both AMD and Google demonstrates the influence that AI has on the stock market. As more companies recognize the potential of AI and invest in its development, we can expect the market rally to continue. It’s an exciting time for investors who are looking to capitalize on this emerging trend.
However, it’s worth noting that not all AI companies have experienced the same level of success. C3.ai, for example, saw its stock fall 10.77% due to weak revenue and guidance. This serves as a reminder that while the AI industry is growing, not every player will be a winner. Investors must do their due diligence and carefully assess the potential of each AI company before making investment decisions.
As we enter the final weeks of 2023, it’s clear that AI is driving the stock market rally. Companies like AMD and Google are leading the charge, with their recent AI announcements generating excitement and propelling their stocks to new heights. The future of the stock market is intertwined with the development of AI, and investors would be wise to keep a close eye on this burgeoning industry. As the saying goes, “The best way to predict the future is to invent it.” And it seems that those who are investing in AI are well on their way to creating a profitable future.
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