On Monday, Alphabet, as Google’s parent company, became the fourth company in the world to reach the market value of $ 5 trillion. With only a relatively slight growth in stock value, the technology giant was able to reach this important turning point in the stock market. As predictable, the three former members of the trillion -dollar club, Nvidia, Microsoft and Apple, are all technology industry leaders who have benefited from the wave of investment in artificial intelligence.
Alphabet’s shares experienced a good leap at the beginning of September, after a federal judge ruled that the company could retain the Chrome browser, though it is monopoly in the Internet search. The judge’s argument was that productive artificial intelligence would create a significant challenge over Google’s domination over time. Google has also tried to prevent this meaningful challenge by integrating artificial intelligence capabilities into its search engine and investing billions of dollars to develop artificial intelligence -based tools.
This investment seems to have been productive for Google, as the Google Jina app came first among the free Apple Store apps, reducing OPENAI’s chat, and this increased the value of Alphabet stocks.
The excitement of artificial intelligence is irreparable with the huge profits of the stock market for these technology giants and many other companies. The main question now is, are we in a bubble of artificial intelligence?
A prominent example of this excitement is Nvidia, which has become the main symbol of artificial intelligence in the stock market. The company is known as the main face of this fever because of its large share in the artificial intelligence chip market and the significant growth it has experienced with this technology. Earlier this summer, Nvidia became the first company to reach the market value of $ 2 trillion.
Apple, usually considered to be the most experienced member of the group in the field of artificial intelligence, was the first company worth $ 2 trillion, but has not yet reached $ 5. Meanwhile, Nvidia and Microsoft have surpassed Apple and rejected the border. Microsoft’s crossing of $ 5 trillion was also directly due to artificial intelligence.
In late July, Microsoft released its financial report showing that the revenue of the cloud computing platform had grown tremendously. Stock moves after the report released the value of Microsoft for a short time to over $ 5 trillion. Oracle, another large cloud infrastructure provider, also received widespread demand for artificial intelligence. Following the jump of more than 5 % of Oracle’s shares, the company is expected to win half a trillion dollars in artificial intelligence contracts next season. It is noteworthy that Larry Ellison, the head of the Oracle Board of Directors, became the richest person in the world last week.
All of this is a great news for technology companies and their financial indicators, but do they support? This question has occupied the minds of investors. According to some experts, as well as Openai CEO Sam Altman, there is really an artificial intelligence bubble. “Are we at a stage where investors are generally excited about artificial intelligence?” I think yes. “
A report from the MIT also exacerbated concerns a few weeks ago. Researchers said that despite extensive efforts to expand the scale of artificial intelligence in the company, less than one -tenth of the experimental projects have really increased revenue. Currently, artificial intelligence is mainly used in large companies and limited areas, but according to the latest data released by the US Bureau of Statistics, its use is decreasing even in these sectors.
If the hypothesis of the bubble is correct, it can be catastrophic, as a large part of the US economy is now riding on the wave of artificial intelligence. In an article published by federal researchers in July, it was warned that if demand for artificial intelligence is not synchronized with the amount of investment, it could lead to catastrophic consequences, compared to the excessive expansion of the nineteenth -century railway lines and the subsequent economic downturn. Also in July, the economist also described today’s artificial intelligence bubbles as worse than the Dotcom Bubble in Year 2.
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