Shulou(Shulou.com)11/24 Report--

According to news on the morning of February 10, Beijing time, it is reported that the war of generative artificial intelligence is becoming more and more popular.

This week, the resulting investment enthusiasm began to spread to Microsoft and Alphabet, two technology heavyweights. Although they have all invested heavily in the technology, investors have previously preferred small companies with more hype value.

When Google unveiled ChatGPT's competitor Bard on February 6, it unexpectedly overturned and produced the wrong result, causing its parent company Alphabet's shares to plunge 7.7 per cent on Wednesday. Thursday's selling pressure did not abate, and the stock fell 5.1% during the day, wiping off nearly $170 billion (1.15 trillion yuan) in just two days.

You know, after Alpahbet released lower-than-expected results, the stock fell by only 2.8%, which is enough to show how much investors attach importance to the artificial intelligence arms race.

"for stocks like Google, such a big drop only shows that investors don't look at fundamentals at all," said Matt Maley, chief market strategist at investment firm Miller Tabak + Co.

While Google plummeted, Microsoft was sought after by the capital markets. The company explained how it would integrate OpenAI's ChatGPT technology into its Bing search, sending its shares up 4.2 per cent on Tuesday. But analysts seem less enthusiastic, and Morgan Stanley believes that getting consumers to change their search and browsing habits is not only difficult but also costly.

Until this week, the hype about artificial intelligence in the US stock market was mainly limited to Nvidia, which developed chips that could support the complex computing of artificial intelligence programs. In addition, some small companies with "AI" in their names have also become the targets of hype. For example, C3.ai 's share price has doubled so far this year. At the same time, Microsoft and Alphabet both lagged behind the NASDAQ 100 over the same period.

Chinese Internet companies such as Baidu, Alibaba and NetEase have also announced that they will expand the scope of artificial intelligence applications to stimulate share prices.

Bill Stone, chief investment officer of Glenview Trust, said that despite the setbacks in Alphabet, it was too early to draw conclusions about the winners of generative artificial intelligence and its associated business models.

"people are obviously worried that Alphabet will lose its edge in search, but this is simply because it is too dominant and the interests behind the search business are too big, but they still have a lot of tools available." "We own both Microsoft and Alphabet, and we believe both companies are capable of becoming leaders in this field," he said.

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