1 Artificial Intelligence (AI) Stock Investors Are Buying on the Spot

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When artificial intelligence (AI) company Anthropic released a new set of business-focused tools for Claude Large-Scale Language Models (LLM), you might have thought it wouldn’t have a big impact on the stock market. As it turns out, Anthropic isn’t publicly traded (yet), and companies like microsoft (NASDAQ: MSFT) has been releasing business-focused AI tools for years.

But Claude Cowork’s suite of plugins, particularly those aimed at specific industries such as law, finance, and sales, caused the market to plummet, bringing with it many software companies and Anthropic’s AI rivals.

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But the market may have been too quick on one notable AI stock, and some well-connected investors are now taking advantage of that. Here’s what they’re buying and why.

A group of stock traders on the trading floor.
Image source: Getty Images.

Most of the companies that fell in response to Claude Cowork’s rollout were companies that provide software-as-a-service (SaaS) platforms focused on businesses such as: sales force, intuitionand atlassian (As of this writing, its shares are down 27.9%, 33%, and 41.6%, respectively, since the beginning of the year). Nervous investors worried that the enterprise customers of these companies would stop spending money on expensive SaaS platforms if AI tools could handle the tasks the platforms were supposed to streamline.

However, another company that withdrew due to falling stock prices was Google’s parent company. alphabet (NASDAQ:Google) (NASDAQ:GOOG). The company’s stock price fell more than 6% in the week following the announcement. Of course, this is nothing compared to, say, a legal database provider. Thomson ReutersThat’s a 19.3% sale, but it’s still a big number for a company that doesn’t offer the kind of industry-specific software packages that Claude Cowork is expected to make an impact on.

But Google has a big presence in the AI ​​race with its LLM, Gemini. In November, Google rolled out its own LLM update called Gemini 3. This is a major step forward for Google’s AI service, surpassing OpenAI’s ChatGPT on several intelligence metrics. This rollout included agent AI capabilities and an updated version of the popular Nano Banana image generator. Gemini 3 saw a significant increase in paid subscribers, many of whom may have left ChatGPT. Investors are clearly worried that Claude will poach those same subscribers from Google.

A smartphone displaying the Google logo.
Image source: Getty Images.

Legendary investor Warren Buffett advised investors, “Be fearful when others are greedy, and be greedy when others are fearful.” Mr. Buffett’s Berkshire Hathaway I recently accepted my first position at Alphabet. Other prominent investors appear to have heeded his advice and bought Alphabet on the decline.

Billionaire investor Cathie Wood jumped in with both feet on February 5th, purchasing a total of $21.6 million in Alphabet stock for three of her Ark Invest funds. ARK Space and Defense Innovation ETF (NYSEMKT:ARKX) And the flagship position is worth $15 million. ARK Innovation ETF (NYSEMKT:ARKK).

Savvy investors may want to follow these famous investors and take advantage of this opportunity to pick up Alphabet stock at a discount.

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John Bromels has held positions at Alphabet, Atlassian, Berkshire Hathaway, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Atlassian, Berkshire Hathaway, Intuit, Microsoft, and Salesforce. The Motley Fool has a disclosure policy.

1 “Artificial Intelligence (AI) Stock Investors Are Buying on the Dip” was originally published by The Motley Fool



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