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CHART: AI stocks enter correction territory

Aug 10, 2023 - businessinsider.com
The article discusses the recent downturn in AI stocks, with many of the top performers from earlier in 2023 now in correction territory. The author suggests that the overuse of the term 'AI' during earnings conference calls may have led to investor fatigue, and the hype around AI technology may be waning as it could take years for it to generate real profits. The article also mentions that the tech-heavy Nasdaq is down more than 3% since the start of the second-quarter earnings season.

The article also highlights some signs that the AI hype may not be meeting expectations. For instance, Jasper AI, a startup valued at $1.5 billion, cut jobs in July, and usage of ChatGPT has fallen. The upcoming quarterly results of Nvidia, a leading AI company, could set the tone for AI stocks for the rest of 2023.

Key takeaways:

  • Many of the top AI stocks from earlier in 2023 have entered correction territory, with shares falling 10% from a recent peak.
  • Investors are possibly becoming weary of the AI hype, concerned that this technology could take years to generate real profits.
  • The term 'AI' has been dropped 390 times in second-quarter earnings season, but it doesn't seem to have the same effect anymore, with the Nasdaq down more than 3% since then.
  • There are signs that the AI hype may not be living up to expectations, with AI companies like Jasper AI cutting jobs and usage of AI tools like ChatGPT falling.
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