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Cramer: Wall Street's AI hype may fizzle like GoPro if it fails to deliver real returns

  • Cramer said Wall Street's AI craze may be reaching its peak, comparing it to the GoPro fad years ago.

  • Cramer questioned if companies are hyping AI just to raise stock valuations, without legitimate use cases.

  • Cramer said AI is meant to save businesses money, not serve individual consumers.

  • Cramer believes companies embracing AI for show will fizzle if they can't deliver a real ROI.

  • Cramer said stocks of companies pushing AI as transformative without real returns will fizzle too.

cnbc.com
Relevant topic timeline:
- The venture capital landscape for AI startups has become more focused and selective. - Investors are starting to gain confidence and make choices in picking platforms for their future investments. - There is a debate between buying or building AI solutions, with some seeing value in large companies building their own AI properties. - With the proliferation of AI startups, venture capitalists are finding it harder to choose which ones to invest in. - Startups that can deliver real, measurable impact and have a working product are more likely to attract investors.
Main topic: The AI market and its impact on various industries. Key points: 1. The hype around generative AI often overshadows the fact that IBM Watson competed and won on "Jeopardy" in 2011. 2. Enterprise software companies have integrated AI technology into their offerings, such as Salesforce's Einstein and Microsoft Cortana. 3. The question arises whether AI is an actual market or a platform piece that will be integrated into everything. Hint on Elon Musk: There is no mention of Elon Musk in the provided text.
Companies across various sectors discussed their use of artificial intelligence (AI) and how it could benefit their businesses during Q2 earnings calls, aiming to distract investors from lackluster Q2 results and highlight the potential for AI to boost earnings and sales in the future, according to Goldman Sachs analysts.
Wall Street is expected to continue its recent gains, fueled by optimism around Nvidia's upcoming earnings and the potential long-term boost in earnings per share from the adoption of artificial intelligence (AI). According to Goldman Sachs, companies with high exposure to AI adoption and larger size are likely to see increased valuation multiples as the adoption timeline becomes clearer.
Artificial intelligence (AI) has the potential to deliver significant productivity gains, but its current adoption may further consolidate the dominance of Big Tech companies, raising concerns among antitrust authorities.
Entrepreneurs and CEOs can gain a competitive edge by incorporating generative AI into their businesses, allowing for expanded product offerings, increased employee productivity, more accurate market trend predictions, but they must be cautious of the limitations and ethical concerns of relying too heavily on AI.
The use of artificial intelligence (AI) by American public companies is on the rise, with over 1,000 companies mentioning the technology in their quarterly reports this summer; however, while there is a lot of hype surrounding AI, there are also signs that the boom may be slowing, with the number of people using generative AI tools beginning to fall, and venture capitalists warning entrepreneurs about the complexities and expenses involved in building a profitable AI start-up.
The stock market's recovery in 2023, driven by technology stocks and the growing interest in artificial intelligence (AI), suggests that a new bull market may be underway, making it a good time to consider buying AI stocks like Advanced Micro Devices and Palo Alto Networks.
AI is reshaping industries and an enterprise-ready stack is crucial for businesses to thrive in the age of real-time, human-like AI.
Investment bank Morgan Stanley outlines upcoming events in the AI sector, including conferences by Google, Amazon, and Meta, that could impact AI stocks by providing insights into each company's AI opportunities and risks.
Investors should consider buying strong, wide-moat companies like Alphabet, Amazon, or Microsoft instead of niche AI companies, as the biggest beneficiaries of AI may be those that use and benefit from the technology rather than those directly involved in producing AI products and services.
Artificial intelligence (AI) is revolutionizing industries and creating opportunities for individuals to accumulate wealth by connecting businesses to people, streamlining tasks, improving selling strategies, enabling financial forecasting, and assisting in real estate investing.
The rise of AI presents both risks and opportunities, with job postings in the AI domain increasing and investments in the AI space continuing, making it an attractive sector for investors.
Corporate America is increasingly mentioning AI in its quarterly reports and earnings calls to portray its projects in a more innovative light, although regulators warn against deceptive use of the term.
Meta's future growth relies heavily on AI as it aims to optimize its advertising offerings and emerge as a leader in AI-enhanced digital advertising, despite facing regulatory concerns and competition in the fast-moving AI landscape.
Artificial intelligence (AI) stocks have experienced a recent pullback, creating buying opportunities for companies such as Taiwan Semiconductor and UiPath, which are poised for growth due to their involvement in AI technology and products.
The rise of artificial intelligence (AI) is a hot trend in 2023, with the potential to add trillions to the global economy by 2030, and billionaire investors are buying into AI stocks like Nvidia, Meta Platforms, Okta, and Microsoft.
C3.ai, a company that provides enterprise AI applications, has seen its shares rise 180% this year, driven by its partnership with Google and its shift towards a transaction-based pricing model, but it still has to prove itself to skeptics as it faces a significant short interest and the challenge of achieving profitability.
Salesforce plans to integrate artificial intelligence (AI) into its customer relationship management (CRM) software, offering automation, personalized marketing, data analytics, and improved customer support, making it a strong AI investment with improving profitability and an attractive stock to buy.
AI can improve businesses' current strategies by accelerating tactics, helping teams perform better, and reaching goals with less overhead, particularly in product development, customer experiences, and internal processes.
Artificial intelligence (AI) and blockchain technologies are reaching a tipping point and are expected to disrupt industries, shrink established sectors, and create new markets, according to a report from Moody's Investors Service.
Artificial intelligence has been a driving force behind the stock market gains, but monetizing it is not as easy as it seems.
Artificial intelligence stocks, including C3.ai, Microsoft, Snap, and AMD, have experienced a shift in market sentiment as investors focus on the fundamentals and question whether the AI rally has reached its peak.
Despite the hype around AI-focused companies, many venture-backed startups in the AI space have experienced financial struggles and failed to maintain high valuations, including examples like Babylon Health, BuzzFeed, Metromile, AppHarvest, Embark Technology, and Berkshire Grey. These cases highlight that an AI focus alone does not guarantee success in the market.
Tesla is gaining momentum on Wall Street as an artificial intelligence stock.
Stock investors should focus on long-term beneficiaries of artificial intelligence, as near-term beneficiaries have already experienced significant share price increases, according to Goldman Sachs. Companies across various sectors, such as communication services, consumer discretionary, financials, and information technology, are expected to see a boost in their earnings per share from AI adoption.
Artificial intelligence (AI) is poised to be the biggest technological shift of our lifetimes, and companies like Nvidia, Amazon, Alphabet, Microsoft, and Tesla are well-positioned to capitalize on this AI revolution.
Artificial intelligence (AI) is predicted to generate a $14 trillion annual revenue opportunity by 2030, causing billionaires like Seth Klarman and Ken Griffin to buy stocks in AI companies such as Amazon and Microsoft, respectively.
AI stocks have emerged as the driving force behind the stock market rally, with nearly $500 billion added to the US market cap in 2023, led by companies like NVIDIA and Apple, and the growth prospects of AI continue to be driven by rising demand for software and semiconductor chips.
Goldman Sachs suggests that the recent surge in AI stocks does not indicate a bubble and that we are still in the early stages of an AI revolution, while others remain cautious about potential risks and advise a measured approach to investment in the AI sector.
Artificial intelligence (AI) is the next big investing trend, and tech giants Alphabet and Meta Platforms are using AI to improve their businesses, pursue growth avenues, and build economic moats, making them great stocks to invest in.
Amazon and CrowdStrike are highly promising AI stocks that offer attractive investment opportunities due to their utilization of AI technologies in various business segments and their potential for growth in the AI-driven revolution.
Wall Street stocks rebound as investors shake off concerns about the Federal Reserve's interest rate strategy, with the S&P 500 and Dow Jones both posting gains, while the Nasdaq Composite also rises; investors are now looking ahead to the PCE inflation data and second quarter GDP reading for more insight into the Fed's rate path, as well as the potential impact of a government shutdown and debt woes at Chinese property developers. Meanwhile, Goldman Sachs interns express optimism about the positive impact of AI on society, concerns arise that student loan repayments could hinder retail sales, President Biden announces plans to visit the United Auto Workers strike in Michigan, and Amazon invests up to $4 billion in AI startup Anthropic.
The hype around artificial intelligence (AI) may be overdone, as traffic declines for AI chatbots and rumors circulate about Microsoft cutting orders for AI chips, suggesting that widespread adoption of AI may take more time. Despite this, there is still demand for AI infrastructure, as evidenced by Nvidia's significant revenue growth. Investors should resist the hype, diversify, consider valuations, and be patient when investing in the AI sector.
Artificial intelligence (AI) is being seen as a way to revive dealmaking on Wall Street, as the technology becomes integrated into products and services, leading to an increase in IPOs and mergers and acquisitions by AI and tech companies.
The rally in artificial intelligence stocks has cooled off, but companies like Amazon and Facebook-parent Meta Platforms continue to make headlines in the AI industry. The focus now shifts to monetization strategies for AI products and the potential for new revenue for companies.
The rapid proliferation of AI tools and solutions has led to discussions about whether the market is becoming oversaturated, similar to historical tech bubbles like the dot-com era and the blockchain hype, but the depth of AI's potential is far from fully realized, with companies like Microsoft and Google integrating AI into products and services that actively improve industries.
Artificial intelligence (AI) stocks like Recursion Pharmaceuticals and C3.ai have experienced gains but may not be good long-term investments due to volatility, lack of revenue, and underwhelming growth, making them risky for investors.
The demand for AI-related skills has surged in the past six months, as businesses seek experts to help them create tools and assets aligned with their specific needs, according to a study by Fiverr, which also found increased searches for retail-related gigs and online strategies for service businesses.
The rise of AI is not a new phenomenon, but it is currently experiencing unprecedented levels of attention, prompting companies to consider its potential impact; however, investors are skeptical about the longevity of many AI startups and emphasize the importance of not ignoring the opportunity AI presents.
Advancements in AI have continued to accelerate despite calls for a pause, with major players like Amazon, Elon Musk, and Meta investing heavily in AI startups and models, while other developments include AI integration into home assistants, calls for regulation, AI-generated content, and the use of AI in tax audits and political deepfakes.
The explosive growth of AI companies in terms of investment and valuation raises concerns about sustainability and the possibility of a bubble in the industry.
The article discusses the growing presence of artificial intelligence (AI) in various industries and identifies the top 12 AI stocks to buy, including ServiceNow, Adobe, Alibaba Group, Netflix, Salesforce, Apple, and Uber, based on hedge fund investments.
A TechCrunch Exchange newsletter explored the results of a survey on the future of AI and delved into the book "Number Go Up: Inside Crypto's Wild Rise and Staggering Fall" by Zeke Faux, which examines the broader impact of the cryptocurrency industry.
The rise of artificial intelligence (AI) technologies, particularly generative AI, is causing a surge in AI-related stocks and investment, with chipmakers like NVIDIA Corporation (NVDA) benefiting the most, but there are concerns that this trend may be creating a bubble, prompting investors to consider focusing on companies that are users or facilitators of AI rather than direct developers and enablers.
Warren Buffett's business partner, Charlie Munger, believes that artificial intelligence (AI) is overhyped and receiving more attention than it deserves, citing that it is not a new concept and has been around for a long time, but there have been significant breakthroughs that surpass previous achievements, making AI a game-changing technology with long-term impact.