AI stocks surge in latest Wall Street amid rising craze for ChatGPT

The ChatGPT chatbot's viral popularity has made artificial intelligence a new term on Wall Street, sparking interest from retail investors. On Monday, shares of C3.ai Inc., BigBear.ai, and SoundHound AI continued to rise. C3.ai, a software company, increased by 11%, BigBear.ai, an analytics company, increased by over 21%, and SoundHound, a company that uses conversational AI, increased by 40%. The three small-cap firms' tickers were among those being discussed on stocktwits.com, a social media site geared at investors. "Any company that mentions ChatGPT or something about AI, sees this rally ... it's just the hot buzzword of the month," said Dennis Dick, a trader at Triple D Trading. Due to OpenAI's ChatGPT's success, which attracted a multi-billion dollar investment from Microsoft Corp., investors are now looking for businesses that provide AI-related technology. According to a UBS report published last week, ChatGPT is thought to have amassed 100 million monthly active users in January, just two months after its debut, making it the fastest-growing consumer application in history. This year, the values of C3.ai and SoundHound have more than doubled, while BigBear.ai has increased by more than 700%. According to Matthew Unterman, director at analytics platform S3 Partners in New York, the price increase was caused by long purchasing as investors shifted towards AI equities rather than any significant short covering.