AI is hot right now is an understatement.
It has got the two Big Tech battling to introduce AI into their search engines – Microsoft has scheduled an event today and many believed it is to announce the launch of Bing + GPT4 capabilities.
Google couldn’t sleep well ever since ChatGPT received much popularity. It announced a new AI chatbot, Bard, to accompany its search.
But it isn’t just the Big Tech that are getting into the AI fever, investors are jumping onto whatever stocks that have AI in their names or tickers.
Nine days ago, I did a video to share my observations on five stocks that were under such speculation:
I warned that such AI stocks can run up fast but could also collapse quickly. But still, I did not expect the stocks to run up so much…
The first stock was AiAdvertising (AIAD) where the name suggests that it uses AI to optimise ad campaigns. Its share price went up 186% since I did the video.
The second stock was C3.ai (AI) which helps enterprises adopt AI in their processes. Share price has gone up by 69% from nine days ago.
Third is BigBear.ai (BBAI) which is a competitor to C3.ai, has saw its share price gaining 53% over the same period.
Fourth is SoundHound AI (SOUN), a voice AI platform. Share price was up by 96%.
Lastly we have T Stamp (IDAI), offering online identity services powered by AI. This didn’t do well as the share price was down 8% since the video was published.
I am not suggesting to buy these stocks. In fact, I want to put out a warning a second time – it is best to steer clear of the current AI hyped stocks.
These stocks do not have much fundamentals to talk about and are not worthy as long-term investments.
Share prices are hyped up and can collapse anytime and by a huge amount.
It is fine if you want to speculate with a small amount which you can afford to lose.
But it becomes very risky if you start to think this is a chance to get rich quick.