AI has dominated much of the conversation in 2023 with names like Nvidia, Microsoft, and Google leading the way. TheStreet’s J.D. Durkin dives into the latest advancements in artificial intelligence as well as what to look forward to in 2024.
Full Video Transcript Below:
J.D. DURKIN: Every once in a while, the stock market is helped along by the next “shiny thing” — the cyclical FOMO that leads companies and investors alike to spend their money. And without a doubt, 2023 was defined by the arrival of the newest shiny thing: artificial intelligence.
References to AI skyrocketed in earnings calls in 2023, as companies were eager to make it clear they were well-positioned for the AI revolution.
Many took off to new highs, and none greater than Nvidia, which specializes in microchips. The stock shot up more than 240% in 2023 alone.
Nvidia isn’t the only Magnificent 7 name to be in on the fun: Amazon with AWS, and Alphabet with its own AI chatbot Bard along with its Google Cloud success.
The software company Palantir has scored lucrative contracts with the U.S government to provide AI solutions. That stock is up more than 200% YTD.
And if there’s one name that’s become synonymous with large language models, it’s ChatGPT – and that’s meant big things for Microsoft. The company has invested billions in OpenAI, ChatGPT’s developer, and is folding AI into its Azure cloud platform. With a stock price now well north of $300, Microsoft is one of the most weighted names in the Dow.
The Economist says that 2024 will be the year that artificial intelligence goes “mainstream.” According to resumebuilder.com companies are already using AI for things like customer support and research, but 4-in-10 companies say that they think AI will replace at least some employees in the new year. It’s clear that AI is here to stay, but only time will tell how much of the conversation it dominates next year.
