Global Courant
A robot plays the piano at the Apsara conference, a conference on cloud computing and artificial intelligence, in China, on Oct. 19, 2021. As China overhauls its rules on technology, the European Union throws its own regulatory framework to rein in AI but must still reach the finish line.
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The artificial intelligence craze has swallowed up Wall Street in 2023.
The madness started in November last year, when OpenAI launched the now-infamous large-language model (LLM) ChatGPT. The tool boasts some impressive capabilities and sparked an AI race with rival Google announcing its own chat box – Bard AI – just a few months later.
But the enthusiasm went even further. Investors began flocking to stocks that could provide ample AI exposure, with names like C3.AIchipmaker Nvidiaeven Teslaposted impressive gains despite an overall tense macroeconomic environment.
Like “blockchain” and “dotcom” before it, AI has become the buzzword that companies want to grab a piece of.
Now, some with little to no historical ties to artificial intelligence have been touting the technology on conference calls with analysts and investors.
Supermarket chain Kroger calling itself a “rich history as a technology leader,” and chief executive officer Rodney McMullen cited this as one reason the company is poised to capitalize on the rise of artificial intelligence. McMullen specifically pointed out how AI can help streamline customer surveys and help Kroger deploy the data to stores faster.
Shares of the supermarket giant are up just above 4% from the start of the year.
“We also believe that robust, accurate and diverse first-party data is critical to maximizing the impact of innovation and data science and AI,” McMullen told investors during the company’s June 15 earnings call. “As a result, Kroger is well positioned to successfully deploy these innovations and deliver a better customer and employee experience.”
Likewise, Tyson Food, the world’s second-largest producer of chicken, beef and pork, believes the company can benefit from the explosion of investment and excitement over artificial intelligence. However, CEO Donnie King did not specify how AI would play into the company’s future, or what specific applications the technology would be applied to in the Tyson business.
Stock Chart IconStock Chart IconTyson Foods shares are down more than 20% since January.
“…And we continue to expand our digital capabilities, operating at scale with digitally supported standard operating procedures and leveraging data, automation and AI technology for decision making,” King told investors on the company’s May 8 earnings call.
Manufacturer of heating, ventilating and air conditioning (HVAC) equipment. Johnson controls, artificial intelligence can help the company navigate a turbulent macroeconomic environment, it argues. Chief executive officer George Oliver last month didn’t elaborate on how AI would play a role in the company’s future, beyond citing AI as a potentially useful tool when asked about a drop in orders.
Stock Chart IconStock Chart IconStocks are up 2.2% since January.
“…AI will continue to enable us to expand services no matter what (economic) cycle we end up going through,” Oliver told investors during the company’s earnings call on May 5.
The promise of artificial intelligence has kept stocks higher as Wall Street enters the second half of the year. By comparison, the tech-heavy Nasdaq Composite added about 16% from January.
But while AI’s potential is disrupting a plethora of industries and threatening to automate hundreds of millions of jobs, ultimately, over time, investors will decide who the legitimate beneficiaries are and who is just trying to ride the hype.
Companies without a direct AI link are trying to hitch a ride
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