The big rally in artificial intelligence stocks may have finally come to a halt, but the steady pulse of artificial intelligence news continues.software company stock C3.ai (AI) and Palantir (PLTR), two of the most watched AI stocks in 2023, have been falling since June 16.
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AI shares fell during and after Thursday’s C3.ai Investor Day as the software maker failed to announce any new AI customers.
“C3 shared a number of statistics showing strong client activity levels this quarter,” JP Morgan analyst Pinjarim Bora said in a note.
“The company has cited ‘significant interest’ from customers for participating in the pilot, and C3 saw a quarterly increase in revenue in the first quarter of the fiscal year (July) compared to the same period last quarter,” he said. In total, we’ve closed three times as many pilots.”
Bora added, “While we are encouraged by the net/net, pilot-centric business traction, we are finding evidence of shifting pilots to take on the premise of a consumption-based pricing model. I am waiting for you,” he added.
AI stocks are still in tenuous air
A rebound in AI and PLTR stocks might have been expected following the recent rally. As of Thursday’s market close, AI shares are still up 234% in 2023. PLTR shares rose 118%.
Palantir and C3.ai aren’t the only ones to see recent declines.stocks of computer network companies Arista Networks (ANET) is another popular AI stock, down about 14% since May 30.Also, chip maker stocks Nvidia (NVDA) It’s been flat for the past week or so.
AI Stocks: HPE Orders Increase
in the meantime, Hewlett Packard Enterprise (HPE) partners with German startup Aleph Alpha to bring AI capabilities to its cloud-based GreenLake data analytics service. Aleph Alpha has developed Luminous, a large-scale language model. LLM is key to the rise of generative AI.
HPE GreenLake for Large Language Models provides the ability for customers to upload their own data to train and tune their own customized AI models. New AI services run on HPE Cray supercomputers. HPE announced an AI public cloud service on Tuesday at its Discover 2023 conference in Las Vegas.
AI services are currently available to a small number of customers. It will be widely available in North America in late 2023 and in Europe in 2024.
According to HPE, orders for its AI product pipeline are now at $3 billion, up from $800 million in the previous quarter.
Startup Vectra AI gains share
Meanwhile, private cybersecurity firm Vectra AI hosted an online webinar to walk Wall Street analysts on its AI-powered threat detection and response platform. Competing with Vectra is Palo Alto Networks (PANW), Crowdstrike Holdings XDR markets such as (CRWD). XDR stands for “extended detection and response”.
And Vectra is gaining market share, Wall Street analysts say. During the presentation, Vectra’s management revealed that Vectra has more than 1,000 of his customers and annual recurring revenue of “more than $100 million.” Vectra’s final capital increase came in April 2021, valuing the company at $1.2 billion. Vectra has not announced plans for an initial public offering.
Elsewhere, Cisco Systems (CSCO) has announced the fourth generation of its Silicon One family of cloud computing network devices. “The chip targets AI use cases and is currently being tested by five to six leading hyperscalers,” Evercore ISI analyst Amit Daryanani said in a report.
Hyperscalers are large cloud service providers that include tech giants like Facebook’s parent company meta platform (meta). New Cisco AI devices are the Silicon One G200 and Silicon One G202 network chips.
SandboxAQ Stealth Mode Ended
Cloud computing units, on the other hand, alphabet(GOOGL) Google also had AI news. Google Cloud has launched an AI-based service to detect money laundering for financial firms.
Finally, startup SandboxAQ announced: AstraZeneca (AZN), Sanofi (SNY) and several other biopharmaceutical companies use AI and quantum-powered solutions from its new molecular simulation division, AQBioSim.
SandboxAQ, which will be spun off by Google in 2022, said it also collaborates with the University of California, San Francisco’s Neurodegenerative Diseases Institute and labs at other universities. Quantum computing services are available to researchers from Google and Amazon Web Services (Google’s cloud division). Amazon.com (AMZN).
But commercial quantum computing could still be a decade away.
Follow Reinhard Klaus on Twitter @reinhardtk_tech See the latest in 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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