The number of times AI has been mentioned on earnings calls this quarter has notably risen compared to last quarter, according to Goldman Sachs Investment Research. But it’s not just being mentioned in calls from tech companies. One of the largest rises in mentions comes from the energy sector, which grew by over 45%.
Yahoo Finance’s Brad Smith and Seana Smith break down where AI is getting a shoutout.
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This post was written by Nicholas Jacobino
Video Transcript
Well, NVIDIA might be seen on Wall Street as the bellwether for the A I trade, but it’s not the only player beyond the big tech names like Microsoft Alphabet and Meta.
Other sectors are tempting to ride the coattails of the A I trade, and this is what we teased at the top of the show here, the number of mentions as well from some of the other sectors.
And and it’s quite interesting, especially as you branch out and look even beyond information technology and communication services, even energy Getting in to this A. I talk as of right now this earning season.
Yeah, exactly.
And we bring this up just because this really highlights how critical, how crucial the A I trend.
The A I trade is for the overall markets when it comes to NVIDIA, obviously by far seen and is the leader within the space.
So I think any sort of hints just in terms of future growth what that growth rate is going to look like.
That certainly is going to set the tone here for the entire sector when it comes to tech, when it comes to a I.
But then, even beyond because Brad, like you were just saying the N The number of mentions of a I from other industries has steadily, uh, take to the upside here and you could see it.
You’re right to highlight energy just because when we talk about that next phase, I’m talking about what Patrick Moorhead was just telling us there a couple of minutes ago.
Energy playing a critical role in terms of the A. I development that A I roll out here in terms of that next stage.
So no surprise that we are seeing more and more companies.
66% of companies within the energy sector mentioned a I during their earnings calls this quarter.
That was up from just 19% last quarter.
So that is a dramatic, uh, move to the upside.
And like David Costa over at Goldman Sachs and his team, we’re talking about that.
This just shows that a I has certainly soared here in terms of mentions, amend is broadening of the A. I trade.
So we talk about a bit of a rotation that certainly seems to be playing out within earnings results, and investors are taking notice as well.
And here’s the tune to which they’re taking notice.
S and P 500 companies, citing a I on Q four earning calls.
They saw an average stock price increase of 28.6% in the past year, according to FactSet.
So that takes you back to the previous earnings period 179 mentions of S and P, 500 companies of the term A. I during that same quarter here.
And so, if we continue to see this be a theme that companies tap into not only here in Q one, but going forward for Q two results Q three results.
It’s also going to be a question of OK, when is it going to actually show up and be accretive to the businesses here and be realised as revenue and into the margins?
And I think that’s what investors are going to start pounding the pavement over later this year.
Yeah, exactly.
And I think also the big question is how much of this is already baked into some of these prices.
How much is not even going back to what Patrick M was just saying when he talks about that fourth quarter, that super cycle that we will likely see how much of that has already been reflected.
He He’s making the argument that there’s certainly much more room to run, so I think investors are trying to figure out just what makes the most sense.
Is it the secondary players that will likely maybe potentially see the most run rate and the most growth to the upside here in the second hand adoption story?
But I don’t know.
We’ll see.
Yeah.
I mean, as soon as I can notice the difference between my iPhone pre generative A I and post generative a A I then I’ll be super excited about this right now, all right?
