TECH - AI's 2024 Reality Check: Facing 'Peak AI Hype' It's Time To Prove Its Worth | Benzinga
Artificial Intelligence (AI) was one of the major themes of 2023, wowing investors with increasingly innovative use cases and capturing headlines with demonstrations of how it will become a disruptive force in global industry.
In 2024, however, it’s likely the technology will have to start proving its worth on the bottom line as investors increasingly seek proof that the billions spent on AI development can make a return on investment.
Alex Zukin, tech analyst at Wolfe Research, wrote last month: “We are at peak AI hype with a likely slide into the trough of disillusionment, as actual GenAI revenue dollars take longer to materialize.”
Many of the top gainers of 2023 have strong links with AI: chipmakers, such as Nvidia (NASDAQ:NVDA) and Intel (NASDAQ:INTL) increasingly focused on the next generation of semiconductors that will provide the processing power for new generative AI (GenAI) models.
Indeed, Nvidia, with an outstanding annual gain of more than 220%, was the best performing stock on the S&P 500 in 2023, while rivals AMD (NASDAQ:AMD) and Intel came in with annual gains of 115% and 73% respectively.