The boom in artificial intelligence stocks that began in 2023 may not be the only one, according to one Wall Street investor.
Stocks such as Nvidia (NVDA), Microsoft (MSFT), and C3.ai (AI) have been all eyes on the AI stock play by investors, resulting in a strong year-to-date performance for these stocks. increase. But Berry is wary of the blanket nature of his AI investments, which he points to companies like Nvidia, where he mentioned AI more than 70 times in recent quarterly earnings calls.
C3.ai shares fell 26% on Tuesday after short seller Kerrisdale Capital wrote to C3.ai auditors Deloitte & Touche about “significant accounting and disclosure issues.”
Above, Berry sits down with Yahoo Finance’s Seana Smith and Dave Briggs to discuss the outlook for AI stocks.
Key moments of the video:
00:00:05 – Berry’s AI experience at pitch meeting
00:01:15 – Should we put the brakes on AI chatter?
Sheena Smith: What do you think of all this hype surrounding AI?
Anne Berry: Oh I love the hype.
Sheena Smith: It seemed like every tech company that mentioned technology and even AI, so I saw the stock price go up. Is that something that sticks here or is it just a trend?
Anne Berry: Do you know what is really attractive? Actually this weekend I was at work and was meeting with the founder who is currently raising money. Not a publicly traded company, but a very experienced CEO. And his board of directors was asking him if he could put AI on the pitch, on the pitch deck. And he turned around and said, if I do that, I lose credibility, right?
We are moving in the opposite direction on the pendulum that AI is everywhere. Misquoting movie titles is like everywhere and all at once. I think you’ve seen this in the metaverse, so you should put it back, right? As for blockchain, you’ve seen this. These two buzzwords were everywhere. And it is necessary to sort out wheat and chaff.
Dave Briggs: It’s a more counter take than expected. Even the president weighed in on his AI just moments ago. We can help with disease and climate change. There are potential risks, he said. But Bill Gates himself has said that this would affect essentially every industry on the planet: Goldman Sachs is affecting his 300 million workers worldwide. increase. Why do you think you need to brake? And I know you mentioned the metaverse. Wouldn’t this be different in every quantifiable way?
Anne Berry: I don’t think we need to put the brakes on predicting the impact of AI. I think you should clearly define what it is. So when you think about companies talking broadly about artificial intelligence, some simply mean they have very smart algorithms that take their data input. I have not. They’re just using a lot of computing power to do a lot of calculations quickly. This is unlike the generative AI everyone was excited about, like ChatGPT.
So I think the AI element and its varying levels of sophistication will play into everything, but I’m nervous when it comes to rallying and stocks that companies and management haven’t defined exactly what they mean. I think it is. You can start looking at the bubble area.