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| Source: AI |
A super smart AI called ChatGPT has changed how we talk about artificial intelligence, or AI. It shows us how much AI has improved. ChatGPT is growing quickly and helps people find information by understanding what they ask. Instead of searching through lots of web pages, ChatGPT gives you an answer right away.
But ChatGPT does more than just find information. It can help with lots of things! You can use it to make up stories for movies, fix computer code, and even plan meals. Studies show that using ChatGPT can make people do their jobs better, be more productive, and finish boring tasks faster.
This amazing AI tool can also make us healthier. Health care companies can use ChatGPT to give clear advice and help patients and doctors talk better. Some AI tools can even find diseases early and assist in surgeries.
Teachers can also benefit from using this tool. Khan Academy made an app called Khanmigo that helps students learn and supports teachers. Khanmigo doesn’t just give answers; it also offers resources to expand knowledge and find the right answers. It relies on ChatGPT to work well.
ChatGPT Takes the World by Storm
ChatGPT has taken the AI world by storm with its incredible usefulness and versatility, making it the fastest platform ever to reach a whopping 100 million active users every month. According to a study by UBS in February, it achieved this remarkable milestone in just around two months after its launch. To put it into perspective, OpenAI’s website currently receives a staggering 1.8 billion monthly visitors, as reported by data analytics firm Similarweb.
The astonishing growth of ChatGPT has not gone unnoticed in the investment community. With the AI industry booming, numerous investors have been captivated by the potential of ChatGPT. OpenAI, the visionary company behind ChatGPT, has successfully secured billions of dollars in venture capital. However, since OpenAI is not a publicly traded company, it can be challenging for individual investors to directly participate in ChatGPT’s meteoric rise. Presently, the opportunity for direct involvement is primarily limited to accredited investors and large firms.
Can I invest in ChatGPT?
While everyday investors may not have direct access to investing in ChatGPT, there are still ways to get involved. Some companies that you can buy stocks from have invested billions of dollars in OpenAI, the creator of ChatGPT. These companies are betting on the success of ChatGPT and other AI solutions.
Additionally, there are other investing opportunities with companies that have gained attention because of their connection to ChatGPT or partnerships with OpenAI. These companies are in a position to benefit from the growing adoption of ChatGPT and AI chatbots.
If you’re interested in investing, here are six stocks to consider: These companies either stand to benefit greatly from ChatGPT’s growth and the use of OpenAI technologies, or they are well-positioned to take advantage of the current focus on AI chatbots.
JPMorgan Chase & Co. (JPM)
JPMorgan, a big bank known for its financial services, is developing its own version of ChatGPT called IndexGPT. This artificial intelligence chatbot is designed to help people choose investments and could potentially be an alternative to traditional financial advisors. By offering IndexGPT, JPMorgan aims to lower costs for clients and provide a more streamlined experience.
With all the attention on ChatGPT, IndexGPT has taken the spotlight. JPMorgan even filed a trademark application for this financial “clone” of ChatGPT, making headlines. The application indicates that IndexGPT will be used for advertising, updating securities values, and providing investment consulting.
While JPMorgan’s venture into AI is still in the works, the company has the financial resources to create a powerful AI system like ChatGPT. While we wait for IndexGPT to be launched, investors can benefit from a dividend yield of 2.8% and a solid profit margin above 30%. In fact, Morgan Stanley rates JPMorgan as a “strong buy” and has set a price target of $160, suggesting a potential 13.7% increase from the stock’s recent closing price of $143.26 on June 16.
Alphabet Inc. (GOOG, GOOGL)
Google, the popular search engine, utilizes artificial intelligence (AI) to give users the best search results based on what they type. Recently, Google introduced its own natural language processing tool called Bard, which competes with ChatGPT and has received a lot of attention.
But here’s the interesting part: Alphabet, Google’s parent company, has made investments of over $300 million in an AI company called Anthropic. This firm was founded by former researchers from OpenAI, the team behind ChatGPT. While this investment doesn’t directly involve ChatGPT, it does show that Alphabet is supporting the researchers who helped create it. Alphabet also created a research unit called DeepMind to develop new applications and improve AI innovation.
In the rapidly evolving AI industry, even competitors like Google and ChatGPT can learn from and grow with each other.
Brent Thill, an analyst at Jefferies, believes in Alphabet’s potential and has given their stock a “buy” rating. He also raised the price target from $130 to $150. As of June 16, GOOG stock closed at $123.53 and has seen a significant 38.3% increase in 2023. This suggests that Alphabet is well-positioned to benefit from the AI boom and continue its success in the future.
Microsoft Inc. (MSFT)
If you want to invest in OpenAI’s powerful language models like ChatGPT, look no further than Microsoft. This software giant offers one of the best opportunities to benefit from OpenAI’s innovations. In fact, Microsoft recently upgraded its Bing search engine and Edge browser with a special language model developed by OpenAI. According to a Microsoft blog post, this model is even more powerful than ChatGPT and has been specifically customized for search purposes.
Since 2019, Microsoft and OpenAI have been working together through a partnership that was extended in early 2023. Microsoft made a multibillion-dollar investment, solidifying their collaboration on Azure AI supercomputing technologies and large language models. This deal made Azure the exclusive cloud provider for OpenAI.
Microsoft has shown strong financial performance, with high single-digit growth in both revenue and profits in the first quarter of 2023. Their profit margin remains above 30%. As of June 8, MSFT stock has risen by an impressive 36.3% this year. Recognizing its potential, analysts at Jefferies gave Microsoft a “strong buy” rating and set a price target of $400 on May 23. This indicates significant upside compared to the stock’s closing price of $343.19 on June 16. With Microsoft, you can access OpenAI’s language models and potentially reap the benefits of their ongoing success.
Shopify Inc. (SHOP)
Shopify is an exciting and fast-growing e-commerce company that leverages the power of ChatGPT for customer communication. They have developed a “shop assistant” that can answer questions and engage with potential customers, making it easier for people to use the platform. Not only does this benefit new customers, but it also helps existing clients improve their own customer service and boost sales.
After implementing effective cost-cutting measures, Shopify has returned to profitability and recently reported an impressive 25% increase in revenue compared to the previous year. Loop Capital, a financial firm, has maintained a “hold” rating on Shopify’s stock but raised its price target from $60 to $69. This indicates a potential 16.4% increase from the stock’s closing price of $64.71 on June 16. Despite the challenges faced in 2022, Shopify’s stock has already soared by 70.8% year to date.
Shopify’s growth trajectory and adoption of ChatGPT position the company for continued success in the e-commerce industry. With its innovative approach and promising financial performance, Shopify is attracting attention and demonstrating its potential for further growth.
Palantir Technologies Inc. (PLTR)
Palantir is a massive software company valued at $32 billion that has been using AI technology long before ChatGPT became popular. Their chatbots and big data analytics have caught the attention of several governments seeking better decision-making capabilities for their military operations.
Now, Palantir is taking steps to enhance its chatbots to provide guidance to business owners. This expansion allows them to serve a wider range of companies and industries beyond government contracts. Although governments tend to remain loyal due to the challenges of switching to alternative solutions, Palantir is actively diversifying its customer base.
The company’s share price has more than doubled since the beginning of May, reflecting the growing adoption of chatbot technology by individuals and organizations in various industries. Palantir has achieved impressive double-digit revenue growth and significantly increased earnings year over year. It has quickly transformed into a profitable company with expanding profit margins.
While some analysts set their price targets before the recent surge in May and may not be entirely confident about the current stock price, Palantir has the potential to make further progress if its strong earnings trajectory continues. With its expertise in AI solutions, Palantir remains a noteworthy player in the industry and is poised for continued growth.
Nvidia Corp. (NVDA)
Nvidia is a leading player in the AI industry and recently achieved a remarkable milestone by reaching a market capitalization of $1 trillion. The company boasts a higher valuation compared to its peers, with a price-earnings ratio of 200. While the valuation may raise some concerns, Nvidia’s growth trajectory is undeniably strong.
The company’s leadership projects an impressive total revenue of $11 billion for the second quarter, surpassing the widely held expectation of $7.2 billion. This guidance caused the stock to surge as investors recognized the significant 60% year-over-year revenue growth compared to the second quarter of 2022. Additionally, Nvidia’s profit margins have been on the rise.
Nvidia is capitalizing on the AI wave as AI applications heavily rely on its specialized chips to function effectively and operate at high speeds. These chips are crucial for technologies like ChatGPT, with OpenAI utilizing thousands of Nvidia GPUs for training ChatGPT, as mentioned in a Microsoft blog post.
As the demand for ChatGPT and other AI tools continues to rise, OpenAI and other companies will require more Nvidia GPUs to meet their needs. Nvidia has a strong hold on the GPU market, which is a specialized type of chip that powers ChatGPT and other AI tools. As these tools gain popularity, the companies behind them will need to procure additional chips from Nvidia for their data centers.
UBS, a renowned financial institution, has given Nvidia’s stock a “strong buy” rating with a price target of $475, emphasizing its potential for further growth. With Nvidia’s stock already surging by an impressive 163.6% year to date, the company remains at the forefront of the AI revolution and continues to deliver compelling results.
