Artificial intelligence (AI) is drastically changing U.S. financial markets, creating new opportunities as well as risks for various companies.
Impact of AI on Market Fluctuations
Nvidia Corp., with a market capitalization of approximately $4.5 trillion, stands as the world’s most valuable company, while AI innovators like OpenAI and Anthropic have secured billions in funding. Investors are preparing for steep market shifts akin to those seen during the early Internet years.
Risks for Companies Amid AI Growth
Many investors are reassessing their investments, moving away from companies perceived as vulnerable to AI-related changes. In particular, Wix.com, Shutterstock, and Adobe have been identified as high-risk by Bank of America. Their stocks have dropped more than 33% since mid-May 2023, while the S&P 500 has increased by 8.6%.
Outlook for High-Tech Companies
Despite the pressures from AI, Duolingo has doubled its stock price due to revenue growth, partly through its own AI tools. However, this trend raises questions about the sustainability of growth. Leading tech companies like Microsoft and Google continue to invest heavily in AI, setting the stage for further growth.
In conclusion, artificial intelligence presents both new opportunities and significant risks for businesses. The development of these technologies will determine the resilience and competitiveness of companies in the future.
