Financial institution of America (BofA) reports that investors have poured a significant amount of money into technology shares as a result of the development of synthetic intelligence. “The frenzy over shares linked to synthetic intelligence has gone too far but won’t die down just yet,” they declared.
Investors are purchasing stock in technological companies like Nvidia, which just grew to have a $1 trillion market value.
NVIDIA is renowned for producing integrated circuits, which are found in everything from digital gaming consoles to personal computers (PCs). The company is the leading manufacturer of top-tier graphics processing units (GPUs).
Finally, due to Nvidia’s better chip processing power and machine learning capabilities, its value increased with the development of cryptocurrencies and AI.
Investors are putting money into generative AI firms after seeing the success of OpenAI’s ChatGPT and DALLE, an AI chatbot and a visual generator tool based on written prompts. A “child bubble” in AI, according to Michael Hartnett, a strategist at BofA, was the main market theme in May, with tech funds bringing in an all-time high of $8.5 billion the week of May 31, 2023.
According to Bloomberg, some people believe AI can quickly increase productivity and profit margins across a range of industries, while others believe the tech rally is being driven by a fear of being replaced.
According to a JP Morgan study conducted in January 2023, 53% of businesspeople believed that synthetic intelligence technology would have the greatest impact on how purchasing and selling will change over the next three years. However, Hartnett stressed that he continues to be pessimistic on stocks in general due to the possibility of deteriorating financial conditions. The 2022 inventory guess was correctly predicted by Harnett in advance.
According to Forbes, shares of AI cryptocurrency have increased. Despite making up just 0.4% of the cryptocurrency industry, AI cryptos already have a $4.27 billion market valuation. Juan Leon, a cryptocurrency expert at Bitwise Investments, thinks that current events might occasionally drive the cryptocurrency market. They run the risk of becoming “just another fad” in a market that has been hyped up.
Another viewpoint was offered by blockchain and artificial intelligence researcher Vasco Lopes, who stated that “real and tangible developments within the AI and blockchain industries can surely be driving the rise within the value of AI-related cryptocurrencies.”