During 2023, technology, driven by the emergence of the Open AI-developed chatbot ChatGPT, has caused significant gains in stock prices. After an abysmal 2022, with interest rate, inflation, and supply chain issues looming large, investors moved en masse into positions benefitting from AI’s emergence as a defining paradigm.
The companies that benefitted the most from the AI-driven equity market boom became “the Magnificent Seven,” in homage to a classic Hollywood Western. With no genuinely new names, the group consists of Apple, Microsoft, Tesla, Nvidia, Meta, Alphabet, and Amazon. Together, the companies posted an average of 90 percent gains in the first half of 2023, while the NASDAQ’s overall index growth of 32 percent represented its finest first-half performance in four decades. Silicon Valley’s Nvidia stood head and shoulders above its cohorts, attaining 190 percent gains on the strength of advanced semiconductor chips capable of training generative AI platforms. Many other companies on the list represent significant customers of the firm’s graphics processing unit (GPU) products. Microsoft also presents a high-flying AI-propelled proposition, as it moved from simply partnering with Open AI to taking a significant $13 billion (49 percent) minority stake in the company. With Apple testing generative AI for Siri, Meta seeking to embed AI in Facebook feeds, and other companies making similar moves, many in the industry also see growth on the medium-term horizon.
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AuthorStewart Strawbridge rode The Bruce to victory in the 111th running of the Maryland Hunt Cup in 2007 Archives
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