Demand for technology company stocks is growing in the market
After a lull in 2022, financial markets have been rising since the beginning of 2023. Technology stocks have risen steadily. Undoubtedly, the development of the artificial intelligence segment has been a strong stimulus. This technology is not only interesting for the IT sector but also for other sectors. More and more companies are using AI-based solutions to automate and optimise business processes.
Such trends are fuelling the AI market, as the Economist’s research shows. The paper notes significant growth in AI-related developments. At the same time, companies are actively expanding the number of specialists who develop AI-based products. There has also been an increase in venture capital deals involving AI start-ups and in the share prices of companies working in the field.
Overview of changes in the technology market
According to available data, the share price of IT companies such as Microsoft, Alphabet, Amazon and others has increased by 60 per cent since the beginning of 2023. As a result, the earnings of technology giants are ten times higher than those of companies in the S&P 500 index.
This upswing in the market is due to investors’ optimistic expectations of progress in the AI sector. Demand for the technology is growing. And there are new ways to integrate it into different business processes.
The Economist’s research includes the following facts:
– around 60% of the IT companies surveyed have posted job vacancies mentioning AI in the last 3 years;
– during this period, the number of retailers using AI solutions in some way increased fourfold;
– the number of deals between S&P 500 representatives and AI startups has increased to 25% in 2 years (previously 19%);
– since the beginning of 2023, the value of the shares of the top 100 companies related to AI in one way or another has increased by an average of 11%. At the same time, the value of the securities of companies not actively involved in AI remained unchanged.
It is worth noting that AI tools are not only of interest to the technology sector. JPMorgan, for example, has patented a chatbot based on AI technology to help with investment activities. The robot takes over some of the company’s processes. It is involved in the work of departments such as advertising, consulting and software support. In addition, JPMorgan is implementing an AI solution that monitors and processes various market signals and makes predictions based on them. The company’s product is based on the ChatGPT language model released in 2022 by the startup OpenAI.
In addition to JPMorgan, Moody’s is also planning to release its AI products. It has teamed up with Microsoft and OpenAI.
