🔤🔤 = MONEY. Why do companies love to talk about AI?
In 2024, during a sales interview:
— Sell me this pen.
— It's powered by generative AI.
The research agency FACTSET examined the transcripts of earnings conference calls of the 500 largest IT companies from the S&P 500 list and linked the "mention index" of artificial intelligence to the business's profitability.
🚀 The average number of AI mentions during earnings calls was 13 times. NVIDIA set an absolute record, with AI being mentioned 114 times during its earnings report. The top 5 leaders in AI engagement also include Salesforce, Cadence Design Systems (chip design), Alphabet (Google), and Microsoft.
😮The sharp increase in AI mentions coincides with the announcement of ChatGPT by OpenAI at the end of 2022. Whereas previously, AI was mentioned by an average of about 50 companies, by the end of 2023, this number soared to 179 companies.
💯A correlation was found: companies that mentioned AI in their earnings reports saw an average annual stock price increase higher than those that didn't discuss AI at all: 26.8% versus 14.3%. Critics of Sam Altman might want to reconsider their stance!
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🔜 Could NVIDIA Be on Track to Become the World's Most Valuable Company?
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