ChatGPT hype boosts C3 AI, Microsoft, Buzzfeed
Yahoo Finance’s Ines Ferre joins the Live show to discuss how AI stocks are trading amid the ChatGPT hype.
JULIE HYMAN: As that buzz in particular around ChatGPT has exploded since its late November debut, its capacity to complete tasks like coding, writing content, and entertaining users, it has investors trading the hype. And it's sending both leading and under-the-radar artificial intelligence stocks higher. Our Ines Ferre is joining us now to talk a little bit about that rally, and then we're going to circle back with [? Kathy ?] in just a moment. Ines, what have you been seeing?
INES FERRE: Yeah, Julie, and we have been seeing AI-related stocks really skyrocket over the last month. I want to show you on our YFi Interactive board, you will see here-- first, I want to show you C3.AI. This company went public back in December 2020. It's an AI software company. Its clients include the US Air Force, 3M, Shell, Bank of America. Take a look, year-to-date up 92%. Now, this stock had been caught up in the tech selling last year, but this year really rallying around this buzz around AI.
Of course, on this chart, you'll also see Microsoft, which has invested $10 billion in OpenAI, the maker of ChatGPT. You also see BuzzFeed, which last week was up 310% last week after announcing that it would be using AI tools to create content. And then you have some other smaller cap companies like Big Bear.AI. This offers products for health care, government, and manufacturing. And year-to-date, this stock is up, significantly up, 405%.
You also have this other company called Soundhound. It's a voice AI software company, small company. But nevertheless, year-to-date up 14%, also getting caught up in the AI excitement. And there are many uses of AI. There's an analyst over at CFRA Research that talks about cybersecurity and how AI is used with cybersecurity firms. So she was pointing out to Crowdstrike, Palo Alto Network, that year-to-date, these stocks are up as well.
And then we also have to point out that AI has been mentioned during earnings call. I mean, Meta talked about using AI tools to help engineers to be more productive. Palantir back in November talked about Forrester naming Palantir as a leader in artificial intelligence and machine learning. And IBM's Arvind Krishna recently said that AI is projected to contribute 16 trillion to the global economy by 2030. Also saying, "We have been co-creating with many clients to deploy AI at scale," guys.
JULIE HYMAN: Ines, really nice work, really interesting overview of what we've been seeing in the public markets.