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AI stocks: Your ideal type or another hype
AI has been one of the concepts that investors paying close attention to in recent years. However, related companies have not received enoug Show More
AI has been one of the concepts that investors paying close attention to in recent years. However, related companies have not received enough attention to generate enough growth momentum that would surprise the stock market. It wasn't until the astonishing applications released by OpenAI and Microsoft at the end of 2022 that AI concept stocks regained the attention and favor of investors. Stock prices of MSFT have risen by more than 18% this year.

What updates have been reported by other companies?

Elon Musk is developing plans for a new artificial intelligence (AI) start-up called X.AI, which will compete with OpenAI in the generative AI market. Musk has assembled a team of researchers and engineers and secured thousands of high-powered processors from Nvidia.

Amazon has launched Amazon Bedrock, a service that provides access to generative AI on the cloud, enabling customers to build and scale generative AI-based applications via an API. Early integration partners include Accenture, Deloitte, Infosys and Slalom. Amazon Bedrock is currently available in limited preview and pricing has not yet been announced.

Prior to the report released by short-selling firm Kerrisdale Capital on April 4, C3.ai had already accumulated a gain of 206% by 2023. The firm claimed that C3.ai included software development costs in research and development expenses (R&D) instead of revenue costs to increase its profit margin. By doing this, C3.ai was able to position itself as a high-profit-margin SaaS company. However, after the report was released, C3.ai's stock plummeted 26% on the same day.

Is AI a concept stocks worth long-term investment, or is it just another bubble popped by short-selling firms?
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