The boom in AI stocks: What's behind the hype on the stock markets? Find out why the tech industry is taking off in the first half of 2023.

The boom in AI stocks: What's behind the hype on the stock markets? Find out why the tech industry is taking off in the first half of 2023.

According to a report by t3n.de, the boom on the stock markets in the first half of 2023 primarily benefited from seven tech stocks that rose in value due to hopes of a significant influence of artificial intelligence (AI) on the economy and society. According to a study by the McKinsey Global Institute, the spread of AI technologies will enable annual productivity growth of 2.4 to 4.1 trillion euros. This is particularly true in the areas of customer service, marketing and sales, software development and research and development. The “magnificent seven” AI hopefuls are almost identical to the Big Tech stocks that have driven stock market activity in the past. These include companies such as Meta, Apple, Amazon, Alphabet, Tesla, Nvidia, Microsoft and others.

The AI ​​hype has already led to a strong appreciation of AI stocks on the stock market. US tech companies that are intensively involved in AI were particularly able to benefit from the ChatGPT launch. This has led to a sharp rise in stock prices, which in turn has led to a distortion of the Nasdaq-100 technology index. This was then reweighted to compensate for the imbalance.

However, there are also skeptical voices that warn of a possible speculative bubble in relation to AI stocks. Bank of America chief strategist Michael Hartnett has already warned of a “baby bubble” forming around AI stocks. Some market observers see parallels to the dot-com bubble, which was ended in the past by rising interest rates. The ongoing war in Ukraine and the interest rate increases by the major central banks could also lead to an end to the boom.

It remains to be seen whether the providers of the large language models are actually the beneficiaries of the AI ​​hype or whether other industries will benefit more from the technology over time and new providers will overtake the big players. In any case, AI stocks present opportunities and threats that could impact the market in the long term.