The biggest artificial intelligence news of the week came from a software company snowflake (SNOW) and rival Databricks. Investors looking to AI stocks will also find investment advice from BlackRock, economist Ed Yardeni and Deutsche Bank.
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Snowflake hosted an Investor Day this week during its annual user conference.Snowflake announces plans to partner with chip makers Nvidia (NVDA) is one of the largest AI chips. Snowflake customers will now be able to build AI models using Nvidia tools.
Additionally, Snowflake sells data analytics and management software that runs on its cloud computing platform. At the event, Snowflake also deployed Snowpark Container Services. This will allow the customer to safely develop large-scale language models for training his AI-driven applications.
Meanwhile, privately held Databricks acquired generative AI startup MosaicML for $1.3 billion on June 26. At this week’s annual summit, Databricks also touted his AI efforts in the company.
“The acquisition of MosaicML will enable Databricks to offer a comprehensive AI model development platform that we believe offers advantages over our competitors,” Raymond James analyst Simon Leopold said in a note to clients. said. “Databricks’ generative AI platform allows customers to build their own AI models from scratch.”
Analysts said Databricks could file for an initial public offering if market conditions improve, amid competition from Snowflake.
AI Stocks: Economic Impact
Elsewhere, the BlackRock Investment Institute has partially focused on the momentum of AI stocks in its 2023 mid-term outlook. BlackRock believes generative AI will have positive long-term economic effects. He also said that generative AI is a potential “megaforce”.
“The broader range of tasks that can be automated means that implementing these new innovations could boost productivity,” the report says.
“White-collar jobs are at greater risk of automation than ever before,” BlackRock continued. “The resulting cost savings can improve margins. Companies with high labor costs or those with a large proportion of tasks that can be automated will benefit the most. If you don’t, you may be left behind.”
Economist Yardeni has a similar view on AI-interested stocks.
“AI is sparking a new industrial revolution that will transform business processes in every industry,” he said in a note to clients. “However, to live up to that promise, multiple areas of the enterprise may need to upgrade legacy IT systems and start a new technology capital spending cycle.”
fear of missing out
Meanwhile, UK-based Deutsche Bank analyst Adrian Cox released a report on generative AI.
“The most important acronym in artificial intelligence today is not LLM (Large-Scale Language Model) or GPT (Generative Pre-Training Transformer), but FOMO (Fear of Missing It),” Cox wrote.
“Companies are flocking to tech companies for AI products and services. Investors are flocking to chip makers and software companies,” he added.
A Deutsche Bank report covers the state of generative AI. Cox said companies to watch include chipmaker Nvidia and his cloud computing business, like Amazon Web’s services. Amazon.com (AMZN). He also mentions software makers such as: microsoft (MSFT), Network Technology Supplier Arista Networks (ANET) and Internet search giant alphabet (Google).
Microsoft is the largest investor in ChatGPT developer OpenAI.
AI stocks, meanwhile, have a worrying development. The Biden administration is considering tightening restrictions on exports of computer chips that process AI software. The new regulations will ban the export of Nvidia’s underperforming A800 AI chip. Nvidia designs these chips to circumvent export restrictions.
Follow Reinhard Klaus on Twitter @reinhardtk_tech See the latest in 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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