Advanced Micro Devices Inc has captured nearly a third of the market for central processor units while British chip technology firm Arm Ltd's rise in the PC market slowed in the fourth quarter of 2022, according to an analyst report.
The NASDAQ 100 After Hours Indicator is up 8.2 to 12,389.37. The total After hours volume is currently 94,068,895 shares traded.The following are the most active stocks for the after hours session: Ambev S.A. (ABEV) is unchanged at $2.45, with 8,453,049 shares traded. As reporte
U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.
Conversational
artificial intelligence (AI) stocks are red-hot now, and this could be the right time to consider some of the well-known competitors in this field. Yet, there are also a couple of lesser-known businesses in this niche market that are worth taking a look at.
While conversational AI software has been around for a while, the emergence of OpenAI's
ChatGPT chatbot brought this type of platform to the public's attention. This software can power search engines, customer service, coding, and more.
OpenAI isn't a publicly-traded company, but you can consider other businesses that offer investors exposure to conversational AI. So, check out these stocks and conduct your due diligence for potentially powerful returns on this fast-growing tech-market segment.
Microsoft (
NASDAQ:MSFT)
Google parent company Alphabet (
NASDAQ:GOOG
) (
NASDAQ:GOOGL
) might seem like an obvious choice for machine learning exposure in the stock market. After all, Alphabet's been in the AI field for a while. However, I'm actually going to select Alphabet's main rival, Microsoft, for this list. Even though you can't invest directly in OpenAI, you can consider buying MSFT stock as Microsoft is investing $10 billion in OpenAI and its ChatGPT conversational AI software.
Microsoft is making a smart move by integrating the powerful ChatGPT platform into its Bing internet search engine. This will pose a direct threat to Google's search engine dominance. Plus, Alphabet's answer to ChatGPT, known as Bard, is already gaining a negative reputation. As
Reuters reported, Bard allegedly "shared inaccurate information in a promotional video."
That's not a good start for Alphabet as it attempts to rival Microsoft in the conversational AI arms race, so expect GOOG/GOOGL stock to remain weak and MSFT stock to strengthen over time.
What is the Price Target for MSFT Stock?
MSFT has a Strong Buy consensus rating based on 25 Buys, three Holds, and one Sell rating assigned in the past three months. The average
Microsoft stock price target of $291.07 implies 10.36% upside potential.
C3.ai (
NYSE:AI)
Maybe Microsoft stock isn't enough of a pure play in the machine learning field. For more direct exposure to conversational AI and to AI in general, take a look at C3.ai stock. This is a company that
beats EPS estimates time and time again and
continues to grow its revenue each year.
C3.ai has clients like the U.S. Air Force, and it's a nice bonus to know that you're investing in a company with mega-scale government customers. In addition, C3.ai continues to push the boundaries of generative AI (a close cousin to conversational AI) with recent launches of the C3 Generative AI Product Suite and C3 Generative AI for Enterprise Search.
What is the Price Target for AI Stock?
AI has a Hold consensus rating based on two Buys, two Holds, and three Sell ratings assigned in the past three months. Due to its recent rally, the average
C3.ai stock price target of $16.50 implies 26.55% downside potential.
SoundHound AI (
NASDAQ:SOUN)
Now, I will present you to a couple of machine learning specialists you might never have heard of: SoundHound AI and BigBear.ai Holdings (
NYSE:BBAI
). It's fine to examine both of these companies, but I'm only really bullish on SoundHound AI.
Like C3.ai, BigBear.ai conducts business with the U.S. Air Force. However, the company seems to be more involved with cybersecurity-related machine learning than with conversational AI. Furthermore, it's bothersome that it received a delisting threat from the New York Stock Exchange and that it only has a
Hold rating from one Wall Street analyst.
As we'll discuss in a moment, SoundHound AI is positively viewed by the analyst community. Moreover, the company launched a conversational AI platform called Dynamic Interaction, which not only recognizes and understands speech but also responds and acts in real time. On the financial front, it is deploying retrenchment and restructuring strategies and, consequently, expects to deliver over 50% revenue growth and turn a profit at some point this year.
What is the Price Target for SOUN Stock?
SOUN has a Strong Buy consensus rating based on three unanimous Buy ratings assigned in the past three months. Nonetheless, the average
SoundHound AI stock price target of $3.70 implies 7.6% downside potential.
Conclusion: Conversational AI Stocks are Worth a Try
As we've discovered, conversational AI stocks aren't all the same. Some offer pure plays in this niche industry, while others are less direct but still worth considering. Perhaps it's worth taking a look at all of them and picking your favorites for a buy-and-hold stake.
Disclosure
U.S. stock indexes ended lower on Thursday, erasing earlier gains as Treasury yields rose after an auction of 30-year bonds went poorly and overshadowed strong earnings from corporate giants like Disney and PepsiCo.
Alphabet (NASDAQ: GOOGL) stock has dropped over 10% this week on fears that the company is losing the AI war against rival Microsoft (NASDAQ: MSFT). The video below shares two major impacts for Google and sheds light on why the stock is being punished.
U.S. stock indexes turned lower by early afternoon on Thursday as Alphabet shares extended declines to another session, overshadowing gains in Disney after strong earnings.
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Advanced Micro Devices (NASDAQ: AMD) reported impressive financial performance in the fourth quarter (ending Dec. 31), with both revenues and earnings surpassing analysts' estimates. However, a slowdown in PC and gaming segments seems to be adversely affecting investor sentiment.
U.S. main stock indexes were set for a higher open on Thursday as a slew of strong quarterly earnings and data showing a rise in weekly jobless claims outweighed concerns about the Federal Reserve's rate-hike path.
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For Immediate ReleaseChicago, IL – February 9, 2023 – Zacks Director of Research Sheraz Mian says, "For 2023 Q1, S&P 500 earnings are currently expected to be down -7.5% on +2.1% higher revenues. This is down from -4% on January 6th and -2.9% in mid-December 2022."
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