According to Goldman Sachs Investment Research, the number of mentions of AI in earnings calls this quarter increased significantly compared to the previous quarter. But it's not just mentioned in calls from technology companies. One of the largest increases in mentions came from the energy sector, which increased by more than 45%.
Yahoo Finance's Brad Smith and Seana Smith discuss the hype surrounding AI.
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This post was written by Nicholas Jacobino
video transcript
NVIDIA may be seen as a leader in AI trading on Wall Street, but it's not the only player that has surpassed big tech companies like Microsoft Alphabet and Meta.
Other sectors are also tempted to follow the AI industry's lead, and this is what was teased at the beginning of the show, as well as a number of mentions from some of the other sectors.
And this is very interesting. In particular, we can step into this by broadening our horizons beyond information technology, communications services, and even energy. A. I'm talking right now in this earnings season.
Yes, that's right.
We bring this up because it really highlights how important and important AI trends are.
As for NVIDIA, AI trading is market-wide and they are clearly the leader in this space.
So in terms of future growth, I think that gives us some hints as to what that growth rate will be.
It will certainly set the tone for the entire sector in terms of technology and I.
But beyond that, Brad, like you were just saying “N,” the number of mentions of “I” from other industries has been steadily, uh, picking up here, and that You can see it.
The emphasis on energy is right, because when we talk about that next phase, I'm talking about what Patrick Moorhead was talking to us about there a few minutes ago.
Energy plays a key role in AI development as it unfolds in its next stages.
Therefore, it is not surprising that more and more companies are appearing.
66% of companies in the energy sector mentioned I in their earnings calls this quarter.
This was up from just 19% in the previous quarter.
So it's a dramatic, upward movement.
And like David Costa at Goldman Sachs and his team, we're talking about it.
This shows that I is indeed spiking in terms of mentions here. The modification expands the trading scope of A.I.
So I'm going to talk about a little bit of a rotation that certainly seems to be playing out in the performance, and that investors are paying attention to as well.
And here are the songs they are paying attention to.
S and P 500 companies, Q 4 Quote I on earnings.
Over the past year, the average stock price has increased 28.6%, according to FactSet.
In other words, go back to the previous financial period. Here, during the same quarter, there were 179 mentions of S and P, and companies with the term A. I had 500 mentions of him.
Therefore, we believe this will be a theme that companies will leverage not only in Q1, but also in Q2 and Q3 results going forward.
It also becomes a question of when is that going to actually show up and contribute to the business here and be realized as a profit in the bottom line?
And I think that's where investors will start hitting the pavement later this year.
Yes, that's right.
And I think the big question is how much of this is already baked into some of these prices.
You can see how much of that is already reflected when Patrick M talks about that fourth quarter, that supercycle.
He argues that there is certainly still room to run, so I think investors are trying to figure out what makes the most sense.
In a second-hand adoption story, is it the secondary players who are likely to see the highest run rate and most upward growth?
But I don't know.
Let's take a look.
Yeah.
So if I could notice the difference between the pre-generated AI and the post-generated AI on my iPhone, I would be super excited about this right now.
