It is still necessary for investors to be selective in this stock market but shares in companies that are close to the generative AI action are starting to show explosive price action and like Covid, this virus is going to spread but in a good way.
So what is generative AI, this incredible computing algorithm or whatever, born out of that Enigma machine invented so long ago by Alan Turing, which helped the good guys win the Second World War.
Generative artificial intelligence or generative AI is a type of artificial intelligence (AI) system capable of generating text, images, or other media in response to prompts.[1][2] Generative AI models learn the patterns and structure of their input training data, and then generate new data that has similar characteristics.[3][4]
Notable generative AI systems include ChatGPT (and its variant Bing Chat), a chatbot built by OpenAI using their GPT-3 and GPT-4 foundational large language models,[5] and Bard, a chatbot built by Google using their LaMDA foundation model.[6] Other generative AI models include artificial intelligence artsystems such as Stable Diffusion, Midjourney, and DALL-E.[7]
Generative AI has potential applications across a wide range of industries, including art, writing, software development, healthcare, finance, gaming, marketing, and fashion.[8][9] Investment in generative AI surged during the early 2020s, with large companies such as Microsoft, Google, and Baidu as well as numerous smaller firms developing generative AI models.[1][10][11] However, there are also concerns about the potential misuse of generative AI, such as in creating fake news or deepfakes, which can be used to deceive or manipulate people.[12]
Wikipedia
I found an even crisper definition.
A generative AI system is constructed by applying unsupervised or self-supervised machine learning to a data set.
Wikipedia
That tells you straight away how amazing this iteration of AI could be and why it is taking humanity on an uncharted journey. Many people are frightened but there is not getting of this train now that it has left the station. All we can do is make shed loads of money from the companies making it happen so when the machines do take over at least we will be on our yachts in the Med sipping champagne.
AI is going to pop up in many places to transform the investment landscape. One clue as to where those pop-ups might be will lie in investment performance and there is a surprising amount of excitement already in the US stock market where a tsunami of r&d spending is driving a wave of innovation (sorry about the double metaphor but it is so appropriate).
Not, let's look at a few names.
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