Artificial intelligence software company C3.ai, valued at $3 billion, was the fifth most traded on Fidelity’s platform for small investors on Monday, with record daily retail inflows of $31.4 million, according to Vanda Research.
“Small-caps have AI as a much bigger part of their business than larger ones,” said Matthew Tuttle, chief executive of Tuttle Capital Management, of the reason behind retail investor attention on smaller companies. .
Tuttle said he had shorted C3.ai stock a week ago, but was looking to switch to the long side because “that’s where the action is.”
SoundHound AI, which offers voice-based AI platform services, and Thai security firm Guardforce AI have more than doubled in value so far this year, while analytics firm BigBear.ai has soared. for nine.
“We are in the midst of an exciting new AI arms race, and speculative investors are trying to find potential winners in the growing cauldron of AI-adjacent companies,” said Arthur Hogan, chief market strategist at B.Riley Wealth. .
Shares of Microsoft, which backs OpenAI, ChatGPT’s parent company, were up 1.5% in pre-session trading.
Google owner Alphabet Inc. said on Monday it would launch the Bard chatbot service and more artificial intelligence for its search engine as well as developers.
Microsoft is in a strong position in the AI race due to the combination of its close partnership with OpenAI and the capabilities of its Azure unit in compute and data, Barclays analyst Raimo Lenschow said.
Shares of US-listed Baidu Inc. rose nearly 15% on Tuesday after the Chinese search engine said it would finish internal testing of a ChatGPT-like project called “Ernie Bot” in March.
“Clearly there will be winners and losers with the current novelty in the markets, AI, but it will also take some time to figure out how all of these AI-focused companies plan to monetize this exciting new technology,” Hogan said.
