Retail investors flock to small-cap AI firms as Big Tech scrambles for stake | – #Retail #investors #flock #smallcap #firms #Big #Tech #scrambles #stake
Feb 7 (Reuters) – Retail investors look to tech titans for leadership in the next big driver of growth Google In the face of intensifying competition between parent Alphabet and Microsoft, they are entering small companies that use artificial intelligence.
ChatGPT’s viral success has turned the spotlight on artificial intelligence on Wall Street, reminiscent of the blockchain hype of a few years ago, when stocks of companies remotely related to the technology soared.
3 billion dollar artificial intelligence software company C3.ai was the fifth most actively traded on Fidelity’s platform for retail investors on Monday, with 31.4 million daily trades, according to Vanda Research. dollars achieved record retail sales worth
“Smaller companies have more AI than larger companies,” said Matthew Tuttle, CEO of Tuttle Capital Management, explaining why retail investors are focusing on smaller firms.
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Tuttle said he shorted his C3.ai holdings about a week ago, but wanted to go long because “that’s where the movement is.”
Voice AI platform services offer developer SoundHound AI ( SOUN.O ) and Thai security firm Guardforce AI ( GFAI.O ) have more than doubled this year, while analytics firm BigBear.ai has gained nine times.
“We’re in an arms race with new and exciting AI, and speculative investors are clearly looking for potential winners in the growing pot of AI-adjacent companies,” said Arthur Hogan, chief market strategist at B. Riley Wealth.
Shares of Microsoft ( MSFT.O ), which supports ChatGPT parent OpenAI, of the day eventually gained 1.5% in premarket trading ahead of the AI launch.
GoogleThe owner of Alphabet Inc ( GOOGL.O ) said on Monday that it will introduce a search engine, as well as a Bard chatbot service for developers and more artificial intelligence.
Barclays analyst Raimo Lenschow said Microsoft is in a strong position in the AI race due to its close partnership with OpenAI and the combination of Azure capabilities around compute and data.
of Baidu Inc USAwhose shares are listed on rose nearly 15% on Tuesday after the Chinese search engine said in March it would complete internal testing of a ChatGPT-style project called “Ernie Bot.” of the day Earlier, some Chinese AI stocks also rose.
“There will clearly be winners and losers in the current emerging AI market, but it will also take some time for all these AI-focused companies to determine how they plan to monetize this exciting new technology,” Hogan said.
Reporting by Medha Singh in Bengaluru; Edited by Sriraj Kalluvila
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2023-02-07 18:23:21
Source – reuters
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