AI's Market Impact and AI Stocks Volatility

AI technology has emerged as a significant driver of momentum in the stock market, particularly since the rise of ChatGPT. Companies like NVIDIA have been at the forefront, yet high expectations have made the market increasingly volatile; minor disappointments can lead to sizeable share price fluctuations. For instance, NVIDIA’s recent keynote address at CES left investors wanting, resulting in a six percent decline in stock prices. As AI's influence spreads across various sectors, companies with even minimal AI revenue are now perceived as potential AI plays, further heightening the stakes.