As investors poured billions into AI-focused projects, the stock prices of many of these companies rose to new highs, adding about $150 billion to the net worth of the wealthiest individuals.
Over the past few months, AI has been a big contributor to earnings for Meta, Nvidia, Microsoft, Alphabet, and others. As a result, the profits of these companies are helping to make already wealthy people even wealthier.
Meta’s AI investments and cost-cutting measures have added about $57 billion to founder Mark Zuckerberg’s net worth. The tech giant has been vocal about its ambitions in this space, aiming to incorporate AI into its products.
AI technology also helped Oracle founder Larry Ellison overtake Bill Gates on the world’s richest list.
The biggest beneficiary is believed to be NVIDIA founder Jensen Huang. His company recently became a trillion-dollar company, thanks to increasing demand for high-end processors. Nvidia shares are up 199% year-to-date, adding nearly $24 billion to Huang’s fortune in 2023 alone.
AI-related companies drive growth in Nasdaq index
By investing in AI, driving growth to the value of the Nasdaq index. But only a handful of big tech companies have benefited from investing in Nasdaq stocks, including Apple, Alphabet, Microsoft, Amazon, Meta, Tesla and Nvidia.
The AI-driven bullish impact has added $3.35 trillion in corporate value to seven companies this year. However, the remaining 93 stocks on the Nasdaq 100 only gained $635 billion. That means the seven stocks will account for about 84% of the index’s $4 trillion growth in 2023.
Growing Interest in AI Continues to Attract Investors
Since Microsoft announced its investment in ChatGPT’s OpenAI, investors have been quick to look for opportunities within the industry. Some investors like Bill Ackman and Stanley Druckenmiller are investing heavily in artificial intelligence.
Ackman already invested Microsoft has more than $1 billion in assets, hedge fund billionaire Chase Coleman Prompted Investors will buy AI stocks.Similarly, Mr. Druckenmiller placed It invested $220 million in Nvidia and added $210 million to its Microsoft stake.
Retailers gather one after another
A good chunk of the money pouring into AI stocks comes from billionaires, but the bullish move has also caught the attention of retail investors. After missing out on the AI-driven rally earlier this year, retail investors are increasing their exposure to tech stocks.
Quoting VandaTrack, FT I got it Individual investors’ net purchases of US stocks reached nearly $1.5 billion on May 30 and 31. It was the highest single-day figure in three months, and a key aspect of the buying could be attributed to tech stocks.
On the other hand, investments in AI are not limited to stocks themselves. AI-focused startups are also receiving billions of dollars of investment.pitch book report Generative AI deal value announced in Q1 2023 was $10.68 billion. U.S. AI startups have raised $25 billion in funding this year.
Perhaps the best sign of the AI investment craze is the $113 million raised by four-week-old startup Mistral AI.
The post that AI stocks made the world’s richest people $150 billion wealthier first appeared on MetaNews.