Source: Wall Street
Author: Zhao Ying

Whenever a concept becomes hot, the capital market will fluctuate violently, setting off a frenzied feast of speculation.

With the popularity of OpenAI's chat robot ChatGPT, US stock investors quickly began a frenzy of hype, with no exception for companies with a presence on the track. "American headlines"$Buzzfeed (BZFD.US)$Soared by 300% in two days.$C3.ai (AI.US)$The share price has more than doubled.

The craze is reminiscent of the marijuana craze and encryption craze and even the dotcom bubble in the late 1990s. Investors flocked to the stock market and then asked questions. So here comes the classic debate, is this wave of ChatGPT hype a speculative bubble or the pursuit of long-term value?

In fact, AI is nothing new. AI shares have been on the public market for several years. At present, AI technology has been used in various fields, such as interactive chat robots, autopilot, robots, warehousing, and even online writing. There is no doubt that artificial intelligence will continue to develop. In the long run, it will bring about some fundamental changes.

But for now, is the value of the relevant shares really as reflected in the current share price? Some analysts believe that the technology is not yet mature, its landing application is still unstable, and the investment is still highly speculative.

Speculative bubbles?

Thanks to the popularity of the AI, U. S. stock-related stocks rose sharply.

For example, BuzzFeed, a digital media company known as the American headline, has not been ideal in the past year, and its share price has plummeted. But nearly a week, news emerged that the company planned to use ChatGPT, an artificial intelligence program, to help create content, and its share price soared 300% in two days as it soared.

Similarly, artificial intelligence software provider C3.AI Inc has attracted a lot of attention, and C3.ai 's share price has fallen sharply since it went public more than two years ago. However, since C3.ai announced the integration of ChatGPT into its products at the end of January, its share price has soared, more than doubling since January 5.

As the "shovel seller" of the AI industry, providing key chip support$NVIDIA (NVDA.US)$It rose 33% in the past January, its highest increase in nearly six years.

However, signs of a speculative bubble also appear to be emerging, with BuzzFeed shares wiping 40 per cent off last week's intraday highs. It is worth mentioning that in the blockchain wave, a US listed company called long Island Ice Tea changed its name to "long blockchain", even though it soared by 500%.

John Blackledge, an analyst at Cowen, pointed out that BuzzFeed is uncertain about the monetization of short video content and is vulnerable to a decline in digital advertising spending in a weak consumer spending environment.

As for the company's recent move to introduce artificial intelligence technology, John said that while artificial intelligence could eventually help BZFD generate more content at a lower cost, the impact of the adoption of artificial intelligence is not clear.

Pursue long-term value?

The launch of ChatGPT, a chat robot owned by OpenAI, makes the market see the great potential of AI applications.

At present, the commercialization of AI is accelerating. Soochow analysts pointed out that in March 2021, GPT-3, which is also owned by OpenAI, had 300 + application customers nine months after its launch, covering intelligent customer service, education and scientific research, games, search engines and so on.

The ChatGPT based on GPT-3.5 has better performance and higher attention, which can further help enterprises and individuals save time and resources, and the application space behind it is expected to be broader.

According to UBS, the number of monthly active users of ChatGPT exceeded 100m in January, and UBS said the entire market for generative artificial intelligence applications could be as large as $1,000bn, with potential room for growth attracting investors.

In addition, the giants have also added weight in this field.$Meta Platforms (META.US)$CEO Zuckerberg recently said that one of his main goals is to become a leader in generative artificial intelligence.$Alphabet-C (GOOG.US)$CEO Pichai said on the earnings call this week that the journey of artificial intelligence has only just begun, and the best is yet to come.$Snap Inc (SNAP.US)$CEO Evan Spiegel believes that generative artificial intelligence is a "huge opportunity" and has invested a lot of money.

Edit / Somer