MOLINE, Ill. — Wall Street’s continued fascination with artificial intelligence has sent the US stock market to record highs. Since January 1, 2023, the S&P 500 stock index has risen 36%, the NASDAQ has increased a hefty 57% and the Dow Jones Industrial has risen 19%. At the heart of this stock market rally is a company called NVIDIA. Over the past 15 months, NVIDIA's stock price has risen over 579%.
News 8's David Bohlman sat down with Mary Grywacheski from the Quad Cities Investment Group to discuss how artificial intelligence has played a role in this latest surge.
David: We’ve seen advancements in technology over the decades. But why has Wall Street taken such an interest in artificial intelligence?
Mark: You think about the advancements in computers and cell phones over the decades. Over time, they gradually gain more functionality and capabilities. With this rise in artificial intelligence, it’s this technological advancement at a near-unprecedented level in speed and capability.
Wall Street’s fascination with artificial technology is its untapped potential of how it can transform our lives and economy.
- The advancements in health care, science, R&D, business, engineering, and robotics are a few industries impacted by artificial intelligence.
- It’s how companies can use artificial intelligence to gain efficiencies to lower costs or to develop new products that ultimately drive higher revenues and profits.
The stock market is also reflecting the untapped potential of the impact artificial intelligence will have not just next year but 3/5/10 years down the road. But then you expand that potential to a global level.
David: Why is there such a focus and attention given to NVIDIA when Wall Street talks about artificial intelligence?
Mark: Over the past few years, NVIDIA has quickly become the primary manufacturer of the complex microchip processors used in computers to power artificial intelligence applications. It currently controls about 90% of that market. And even though these processors cost about $30K-$40k each, global demand is so massive that NVIDIA is trying to ramp up production as fast as possible. As a result, NVIDIA’s revenues have soared, its profits have soared and so has its stock price.
Since January 1, 2023 (about 15 months ago) NVIDIA’s stock has risen 579%. 10 years ago, if you would have bought $1,000 worth of NVIDIA’s stock, that $1,000 investment would now be worth over $210,000!
David: In what ways can we expect artificial intelligence to impact our lives over the next few years?
Mark: I’ve spoken to some industry experts and they caution that artificial intelligence is still in its relative infancy. In the short term, there will be a lot of consumer-oriented applications. Such as enhanced capabilities and functionalities on your cellphone or laptop or how you use/interact with the internet to shop.
But where some of the truly groundbreaking uses of artificial technology are in the healthcare industry. Artificial intelligence:
- Is being used to help diagnose and detect diseases.
- In R&D to create new drugs and treatments.
- To improve patient care.
- Even using artificial intelligence and robots to assist with surgeries.
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