AI stocks rally in latest Wall Street craze sparked by ChatGPT

Guardforce AI

06/02/2023 16:24

Feb 6 (Reuters) - Shares of C3.ai Inc, BigBear.ai and
SoundHound AI extended a rally on Monday as artificial
intelligence becomes a new buzzword on Wall Street with the
viral success of ChatGPT chatbot, attracting interest from
retail punters.
    Software firm C3.ai  AI.N  rose 11%, analytics firm
BigBear.ai  BBAI.N  jumped nearly 21% and conversation
artificial intelligence company SoundHound  SOUN.O  surged 40%.
    Tickers for the three small-cap companies were among those
that were being bandied about on the investor-focused social
media platform, stocktwits.com. 
    "Any company that mentions ChatGPT or something about AI,
sees this rally ... it's just the hot buzzword of the month,"
said Dennis Dick, a trader at Triple D Trading.  
        The success of OpenAI's ChatGPT, which drew
multi-billion dollar investment from Microsoft Corp  MSFT.O ,
has left investors scouring for companies that develop
AI-related technologies. 
    ChatGPT is estimated to have reached 100 million monthly
active users in January, just two months after launch, making it
the fastest-growing consumer application in history, according
to a UBS study last week.
    C3.ai and SoundHound have more than doubled in value this
year while BigBear.ai has surged more than 700%.
    The surge in prices was due to long buying as investors
moved into AI stocks as opposed to any significant short
covering, said Matthew Unterman, director at analytics platform
S3 Partners in New York.
 (Reporting by Medha Singh and Ankika Biswas in Bengaluru;
Editing by Anil D'Silva)
 ((Medha.Singh@thomsonreuters.com; +91 80 6210 0592; Twitter: https://twitter.com/medhasinghs;))