Summer

View

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noreferrer noopener" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div> 
<p class="has-drop-cap">A recently published <a aria-label=" (opens in a new tab)" href="https://www.pewresearch.org/internet/2023/06/21/as-ai-spreads-experts-predict-the-best-and-worst-changes-in-digital-life-by-2035/#:~:text=They%20predict%20that%20people%20will,security%2C%20privacy%20and%20data%20protection." target="_blank" rel="noreferrer noopener nofollow" class="deco-link">Pew Research report</a> compiled experts’ forecasts on AI by 2035, with most depicting unprecedented transformation. Terri Horton at FuturePath summarized the AI revolution as heading to “exponentially transform human connections.”</p> 
<blockquote class="wp-block-quote"> 
 <p>“<em>By 2035, generative artificial intelligence (GAI) will be fully integrated across the employee experience to enhance and direct knowledge acquisition, decision-making, personalized learning, performance development, engagement and retention.”</em></p> 
</blockquote> 
<p>The question is, which entities will make that transformation happen? Investors have to look at both the software and hardware side of the AI equation. Which large language models (LLMs) are ahead in dataset training, and which hardware suppliers facilitate machine learning?</p> 
<p>Performance-wise, three companies have their proverbial foot in the AI door. Their gains, up until the end of May, were spectacular.</p> 
<h3 id="c3-ai-ai">C3.ai (AI)</h3> 
<p>California-based C3 was founded in 2009, originally launched as a corporate tool to measure carbon footprint. The “C3” stands for this, as in three ways to manage carbon emissions – measure, mitigate and monetize. The company rebranded and went public in December 2020 under the <a href="https://tokenist.com/investing/trading-psychology/" rel="dofollow" class="deco-link">psychologically beneficial</a> ticker AI.</p> 
<p>AI’s initial public offering (IPO) price was at $42.</p> 
<p>C3.ai got on the Forbes AI 50 list for two consecutive years since then. Its core product is C3 AI Suite, a platform for developing and integrating AI-powered apps into enterprises. This includes real-time analytics, ML algorithms, data integration, and user-friendly feature engineering.&nbsp;</p> 
<p>In short, the company streamlines AI integration into existing business operations to automate various tasks previously performed by humans. The AI Suite toolset also penetrated top cloud services: Google Cloud, Microsoft Azure, and Amazon Web Services (AWS).</p> 
<p>Thanks to C3’s AI Suite flexibility, the company landed 10 deals across manufacturing, energy, telecom, healthcare, financial services, and government in the last fiscal year. Year-to-date, from January to May, AI stock soared by nearly 291%, reaching $44 per share on May 30th.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large">
  <img decoding="async" width="1024" height="770" src="https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-182201-1024x770.png" alt="" class="wp-image-158990" srcset="https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-182201-1024x770.png 1024w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-182201-300x226.png 300w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-182201-768x578.png 768w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-182201-650x489.png 650w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-182201-289x216.png 289w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-182201.png 1149w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   <em>In June, from the peak of $48.92, AI stock shrunk by 34%. Image credit: Trading View</em>
  </figcaption>
 </figure>
</div> 
<p>This record was broken once-again two weeks later, having reached an all-time high of $46.46 per share. However, after analysts highlighted that C3.ai’s deals in this fiscal year are largely pilot projects, investors perceived the company’s stock as overpriced.</p> 
<p>Although C3.ai’s year-to-date performance is still solid at 195%, the last month’s gains were humble +16%, slowly returning to May’s under $30 per share. This is the price target the investment bank DA Davidson gave the company in early June.</p> 
<p>Until the company secures more long-term contracts, C3.ai, as a mid-tier AI plugin provider, is out of hype air.</p> 
<div class="cta-referral"> 
 <img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async"> 
 <div class="cta-referral__text"> 
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noreferrer noopener nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p> 
 </div> 
</div> 
<h3 id="microsoft-msft">Microsoft (MSFT)</h3> 
<p>Having invested $1 billion into OpenAI in July 2019, Microsoft has a leg up on other companies. After all, OpenAI’s ChatGPT created the AI hype in the first place as it took the internet by storm. Microsoft is projected to invest $10 billion, bringing OpenAI’s valuation to $29 billion.</p> 
<p>Microsoft is ideally suited to deploy AI software as an established software giant. This has already happened with Microsoft Bing AI Chat, powered by the <a href="https://tokenist.com/microsoft-adds-openais-gpt-4-models-to-azure-government-services/" rel="dofollow" class="deco-link">latest GPT-4 LLM</a>. Likewise, the existing Azure and Power Apps services provide developers with AI rails to deploy plugins.&nbsp;</p> 
<p>Given these natural advantages and de-facto monopoly on Windows OS and Office suite, investors expect Microsoft to lead AI transformation as it gets integrated into a full product spectrum. Owing to the hype, MSFT stock nearly broke its ATH price this year. In December 2021, MSFT topped at $336 per share, inches away from the present $331.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large is-resized">
  <img decoding="async" src="https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-175232-1024x767.png" alt="" class="wp-image-159003" width="840" height="629" srcset="https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-175232-1024x767.png 1024w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-175232-300x225.png 300w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-175232-768x576.png 768w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-175232-650x487.png 650w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-175232-289x216.png 289w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-175232.png 1153w" sizes="(max-width: 840px) 100vw, 840px">
  <figcaption class="wp-element-caption">
   <em>As a heavy blue-chip stock, MSFT had less performance than smaller AI contestants, but its rise has been relentless this year., slowing to 2% in June. Image credit: Trading View</em>
  </figcaption>
 </figure>
</div> 
<p>Microsoft’s current price-to-earnings (PE) ratio is 35.87. Although high, it is drastically smaller than Amazon’s 294 or Tesla’s 74. Given the large AI ground Microsoft is yet to exploit with its impressive infrastructure and ChatGPT-led advantage fully, this suggests that MSFT is nowhere near the top.</p> 
<h3 id="nvidia-nvda">Nvidia (NVDA)</h3> 
<p>Video card-maker turned AI hardware supplier Nvidia has been the main beneficiary of the AI revolution. Even established software giants, from Microsoft’s Azure to Amazon’s AWS, need data center hardware to scale AI, prompting demand. Nvidia cornered the market with its Tensor Cores chip lineup, enabling high-performance computing (HPC) needed for AI.</p> 
<p>Thanks to Nvidia’s unique blend of proprietary software and hardware and established dominance in the GPU market for video gaming, the company is now up 12,000% since it went public. Having joined the exclusive <a href="https://tokenist.com/nvidia-becomes-a-1-trillion-company-as-shares-up-3-5-premarket/" rel="dofollow" class="deco-link">over-$1 trillion market cap club</a>, NVDA stock shows few signs of stopping.</p> 
<div class="wp-block-image"> 
 <figure class="aligncenter size-large">
  <img decoding="async" width="1024" height="767" src="https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-180929-1-1024x767.png" alt="" class="wp-image-159029" srcset="https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-180929-1-1024x767.png 1024w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-180929-1-300x225.png 300w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-180929-1-768x575.png 768w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-180929-1-650x487.png 650w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-180929-1-289x216.png 289w, https://tokenist.com/wp-content/uploads/2023/06/Screenshot-2023-06-26-180929-1.png 1152w" sizes="(max-width: 1024px) 100vw, 1024px">
  <figcaption class="wp-element-caption">
   <em>From June’s peak of $438.54, Nvidia’s valuation is in the correction phase, dropping by 8%. Image credit: Trading View</em>
  </figcaption>
 </figure>
</div> 
<p>Nvidia’s June performance shows only 6.4% gains, now at $403 per share. At a very high price-to-earnings ratio of 214, investors view the stock as overpriced.&nbsp;</p> 
<p>In other words, all the big players – Microsoft, Alphabet, Meta Platforms, Apple, Nvidia, and Tesla – were the obvious AI stock plays. But at this point, this has been largely baked into their current valuations.&nbsp;</p> 
<p>This is also apparent from June’s low Taiwan Semiconductor Manufacturing Company (TSM) performance of only +0.76%. While Nvidia may be the key AI hardware supplier, it relies on TSM for chip production owing to its fabless structure (outsourcing hardware fabrication).</p> 
<div class="cta-sub js__cta-sub"> 
 <div class="cta-sub__start" data-step="1"> 
  <div class="cta-sub__title">
   <strong>Finance is changing.</strong>
  </div> 
  <div class="cta-sub__subtitle">
   Learn how, with Five Minute Finance.
  </div> 
  <div class="cta-sub__excerpt">
   A weekly newsletter that covers the big trends in FinTech and Decentralized Finance.
  </div> <button type="button" class="btn">Try it out (for free)</button> 
 </div> 
 <div class="cta-sub__form" data-step="2" style="display: none;"> 
  <script type="text/javascript" src="https://app.getresponse.com/view_webform_v2.js?u=QcLhh&amp;webforms_id=hpcwd"></script> 
 </div> 
 <div class="cta-sub__result" data-step="3" style="display: none;"> 
  <div class="cta-sub__title">
   Awesome
  </div> 
  <div class="cta-sub__caption">
   You’ve subscribed.
  </div> 
  <div class="cta-sub__greeting">
   You’re well on your way to being in the know.
  </div> 
 </div> 
</div> 
<p><strong><em>Many AI startups are yet to go public, leaving AI exposure to Big Tech. Which incumbents do you think have the best shot? Let us know in the comments below.</em></strong></p> 
<p>The post <a rel="nofollow" href="https://tokenist.com/these-3-ai-stocks-soared-in-may-where-are-they-now/">These 3 AI Stocks Soared in May – Where Are They Now?</a> appeared first on <a rel="nofollow" href="https://tokenist.com">Tokenist</a>.</p>

These 3 AI Stocks Soared in May – Where Are They Now?

Table of Contents

Tokenist

Other articles published on Jun 26, 2023

Japan’s National Tax Agency Revises Crypto Tax Rules: 30% Exemption

Upcoming Web3 X Metaverse Conference, 'Seoul Meta Week 2023'

Ripple News : Did The SEC-Ripple Lawsuit Propel XRP Adoption, Deaton’s Observations Spur Intrigue

FTX Exchange in $8.7B Debt to Clients Amid Bankruptcy: Misappropriation of Funds Revealed

Future Trends: The Role of Blockchain Technology And Where Avorak AI Fits In

Binance Reverses Delisting Decision for Privacy Coins in Europe

Join our free newsletter for daily crypto updates!