AI stocks have played a significant role in pushing Nasdaq’s performance this year. The Nasdaq Composite Index is heavily weighted toward technology stocks, and many of these companies are involved in developing and implementing AI technologies. As a result, the performance of AI stocks has a significant impact on the overall performance of the Nasdaq.
In this initial months of 2023, the Nasdaq 100 has beaten the S&P 500, gaining 35% vs the S&P 500's gains of roughly 12%. However, after the collapse of tech companies last year, the Nasdaq 100 had to make up for even bigger losses.
Amazon uses AI in a number of ways, including expanding Alexa, streamlining its voice assistant Alexa, increasing its logistics and supply chain, and creating new goods and services. Amazon is up 45% in 2023.
Because of its collaboration with OpenAI, Microsoft has recently generated a lot of noise. After the release of ChatGPT, Microsoft just invested another $10 billion in OpenAI, continuing their investment in the tech startup that they started in 2019.
Microsoft recently revealed a new version of its ChatGPT-powered Bing search engine, and the corporation is rushing to include GPT capabilities in all of its products, including the Bing search engine, Edge web browser, Office productivity software, and Azure cloud infrastructure service. Microsoft is up 40% in 2023
- Palantir Technologies
Data analytics startup Palantir Technologies provides software solutions to assist businesses in managing and analyzing their data. The company uses AI technology to improve its software solutions even though it is not primarily focused on developing AI. Palantir Technologies is up 140% in 2023.
Nvidia, a market-leading manufacturer of graphics chips, has benefited from the AI boom by having its graphics cards become the de facto norm in data centers all over the world. The training phase of machine learning uses a lot of computational resources; the inference phase, which comes after, uses less. Both phases are highly supported by graphics processing unit (GPU) processors, which are primarily utilized for rendering video games.
Nvidia briefly surpassed the $1 trillion mark in market capitalization thanks to a race by large and small tech firms to include generative AI tools in their offerings. Nvidia is up 190% in 2023.
- Alphabet (GOOG)
In an effort to regain lost ground in generative AI versus Microsoft and OpenAI, Alphabet is merging its DeepMind and Google Brain AI research divisions. This puts an end to a protracted internal battle between the Silicon Valley and London-based organizations. Alphabet (GOOG) is up 40% until 2023.
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