Excitement surrounding the next generation of artificial intelligence has prompted investors to turn to certain stocks, leading to strong gains over the past six months. The tech sector received a strong dose of support in 2023, which rekindled investor interest after posting huge losses in 2022 that topped $7 trillion.
The tech sector, which was looking for something exciting to spur investor interest, got exactly what it wanted after the release of the next generation of artificial intelligence, which showed that life will not be as we know it and will change rapidly, and a new world looms on the horizon.
The first actions to keep pace with the evolution of human lives
According to experts, there are three technology stocks that will lead the new world and follow the process of human life transition from one stage to another, to be the most beneficiary of the generative artificial intelligence revolution, and the first of these stocks is NVIDIA stock, in addition to Google stock and also Microsoft stock, pointing to These expectations are related to the years to come and not to what we are currently experiencing.
The price of the three shares
NVIDIA’s share is up over 127% from 6 months ago so far, hitting near $384 per share at the time of writing, while Google’s share is up over 22% to around $123, while Microsoft’s share rose 30%.
Incredible demand
ويمكن تبرير الارتفاع الذي يشهده سهم شركة إنفيديا، بالطلب الذي “لا ي صدق” على شرائحها الرسومية الدقيقة، التي تتيح تشغيل الذكاء الاصطناع التوليدي، في حين كانت شركتا غوغل ومايكروسوفت، من أولى ي قفزت في عربة الذكاء الاصطناعي، عبر إطلاق منتجات تواكب التطور الذي got.
The next generation of AI is causing the frenzy
Muhammad Ali Yassin, a financial market and investment expert, said in an interview with Sky News Arabia Economy that the recent boom in artificial intelligence is due to the emergence of a new generation of this technology that runs programs like ChatGPT , indicating that in light of this wave people have come to believe that technology can think for itself so they have started researching the most powerful companies in this domain, which are NVIDIA, Microsoft and Google, which reflected an increase in their shares.
Exaggerated expectations
Yassin believes that there is an exaggeration of what is happening, although generative artificial intelligence is an important technology economically and for investment, but there are exaggerated expectations, especially in terms of actions. NVIDIA, warning investors of the process of drift behind the rises recorded by the shares of these companies, especially since what is happening is happening in a period when there is no prosperity and economic growth in America on top of that all countries in the world are witnessing a strong protectionist wave and so we have to be careful and not get sucked in if the valuation is high because clearly there is a bubble whose features are starting to appear.
Companies are turning to AI to support their actions
Yassin said that any excessive process of increasing the share price of certain technology companies would not be accompanied by a good financial performance that would justify these increases, pointing out that many companies are using artificial intelligence to try to take advantage of the boom and increase their share price, while we may later find out that this technology has some disadvantages, which may cause the price of the shares associated with it to drop significantly, emphasizing that it is never bad to invest in the technology sector, provided that it is not done at any price.
The investor is looking for these companies
According to Yassin, the smart investor may not invest in stocks of companies such as NVIDIA, Microsoft and Google, but rather look for companies that have innovations and strong capabilities in the world of artificial intelligence, but they do not ‘have not been discovered and yet known, expecting companies such as IBM, Amazon and Oracle not to stay away from the current scene. , Although Google, NVIDIA and Microsoft are leading the first wave of recipients of the next generation of artificial intelligence, the scene will not remain so. in the second wave, which will see the adhesion of other companies.
An unknown company could join the trio
For his part, bank adviser Bahij Al-Khatib said in an interview with “Sky News Arabia Economy” that investors have now turned to generative artificial intelligence, indicating that it is almost certain that shares of NVIDIA, Google and Microsoft are really going to lead the new world, but with the possibility A new company has joined this list, as the identity of this company remains unknown until now.
Al-Khatib reveals that the laboratories of tech companies are now in a race against time, as each company seeks to be the winner of the long-awaited invention, the identity of which was revealed a few weeks ago by the Microsoft founder Bill Gates who is “the smart assistant” If anyone manages to outperform Google and Microsoft in this process, they will join the list to become 4 members, as the entry of any new party on the list will not cause Google and Microsoft to leave it, since both companies have strengths that cannot be ignored.
The essential company that everyone needs
Al-Khatib adds that NVIDIA’s situation is completely different, since its presence in the list of actions that will lead the new world is due to the fact that all companies need it, in the processes of developing tools, programs and of robots working with artificial technologies. intelligence, because NVIDIA has the superior chips, programs and electronic technologies that enable every company or factory or institution in the world, winning the race to move to artificial intelligence with its new capabilities, which means that no company can be successful except by using NVIDIA tools, which are years ahead of the competition, which justifies the leap the company has made.
It’s too early to talk about a bubble
Al-Khatib explains that fears of the possibility of a bubble are justified, so caution is in order, pointing out that expectations for NVIDIA, Google and Microsoft stocks are long-term expectations, because what we are seeing currently is only a rally in stocks, especially with regard to Google and Microsoft stocks, and therefore it is important It is too early to speak of a bubble, because the history of the three stocks is based on what happens and not on what we are NVIDIA stock price is expected to go through a correction process to come back and rise again at a later stage.
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