The hype around artificial intelligence (AI) is real but that sentiment has yet to carry into the stock market as compared to other tech stocks like Microsoft, Alphabet, and Nvidia, according to a recent report by DataTrek Research. The lack of buy-in may be attributed to retail investors still trying to recoup from the huge losses from the 2022 stock market crash, but it could also mean there is room for further upside potential in these stocks.
Search query trends indicate that there is more interest in AI than in Bitcoin, while the term “tech stocks” is still far from its peak from February 2021, when high-flying speculative tech stocks reached their peak. This trend could indicate that investors currently in the space are institutional, and that there is more leeway for retail investors to come in to drive the market even higher.
According to DataTrek’s co-founder Jessica Rabe, one positive sign is the interest in AI being far more permanent than hype from other technological sectors like Metaverse, cryptocurrencies, and Web 3.0. Additionally, AI has a much larger total addressable market due to its widespread implications, from corporate profits to productivity.
The Google Trends Search chart also indicates that there is still plenty of room for investors to get in. Search terms like MSFT, GOOG, and NVDA are trending higher since the beginning of the year, but are yet to reach pre-2022 levels. This could suggest that there is still room to grow if more retail investors get involved.
Overall, the hype around AI is real, and while there may be some institutional investors currently driving the market, the potential for more growth exists if retail investors get involved. With a larger total addressable market and technology with more longevity than a lot of recent hype, AI stocks may be worth exploring in the near future.
DataTrek Research is a financial and data research firm that focuses on public markets and data-driven companies. The company was co-founded by Jessica Rabe in 2020 and provides comprehensive insights into and analysis of economic and market trends. Their research focuses on both technical music and public stock trends.
