A Sneak Peek into the AI Obsession: Microcaps & Mainstays
Well, who would’ve thought? Our beloved investors are not only googling “AI stocks” but they’re also playing Sherlock, deciphering the market trends with a fine-tooth comb. The result? Besides the obvious behemoths of AI, a gaggle of AI-themed microcaps is stealing the limelight.
Stocktwits, the esteemed financial communication platform, spilled the beans in their June analysis of top 250 symbols. Their search volume stats are serving as an unexpected boosting platform for stocks with ‘AI’ in their symbol or name. One of the key beneficiaries of this trend? You guessed it, C3.ai Inc.
Decoding the AI Love Affair
In the grand world of trading, what’s happening here is nothing less than a romantic saga. The investors, it seems, are head over heels for companies whose core functions are intertwined with AI. And the data from Stocktwits couldn’t agree more, showing that these AI stalwarts are receiving more attention than their peers, who are using AI as an add-on rather than a core ingredient.
This love affair isn’t restricted to the usual heavyweights though. Microcap CXApp Inc., along with the likes of Nvidia and Palantir, has seen a noticeable uptick in message-volume growth this year. Other microcaps, like Artificial Intelligence Technology Solutions Inc. and Guardforce AI Co., are also stealing the spotlight.
The Money Flow in Figures
In terms of growth, it’s been a mixed bag. Workplace-technology company CXApp has skyrocketed with an impressive 505% rise in the last three months. Artificial Intelligence Technology Solutions isn’t too far behind with a 27% increase. But not everyone’s been lucky – Guardforce AI suffered a considerable 85% dip.
Moving on to ETFs, the Invesco QQQ Trust Series I exchange-traded fund managed to rank 5th in terms of message volume, ahead of Nvidia, Palantir, C3.ai Inc., and Advanced Micro Devices Inc. Several other ETFs like the ProShares UltraPro Short QQQ ETF and the Direxion Daily Semiconductor Bear 3X Shares ETF also made the top 250 list. Whether they’re grabbing attention for bearish bets against the AI rally remains a question.
The AI Investment: More Than a Fling?
While the AI trend has certainly caught the eye of investors, ranging from megacap tech to microcaps, the endgame isn’t clear yet. People are grappling with understanding the potential of AI, especially as they take tentative steps into the unexplored territory of generative AI. It’s exciting, it’s promising, but it’s also quite the wild west.
Case in point, Nvidia. Despite having announced the material impact of AI on its earnings and witnessing a 62% growth over the last three months, there’s an air of cautious optimism. It seems we’re all looking for the next Nvidia. Meanwhile, the smart money is indeed on AI, but where exactly it lands, only time will tell.
