The Wall Street Journal reported on July 23, citing James Oi, a market strategist at Tiger Brokers, that recent performance from technology companies indicates that demand for artificial intelligence (AI) is translating into actual revenue growth.
Intel's AI-related business grew by more than 70% in the second quarter compared to the same period last year. Alphabet's Google Cloud revenue surged by 82% due to AI demand.
Oi described AI as "not just a trend or exaggerated expectations," but rather a "rapidly growing business."
However, investors reacted more sensitively to rising investment costs than to the growth of AI businesses. Alphabet's stock fell by 6.9%, while Intel's dropped by 2.3%. Nevertheless, Intel rebounded by over 5% in after-hours trading following its earnings announcement.
Oi analyzed that the decline in stock prices for companies expanding AI investments may have been excessive due to concerns over cost burdens. He added that current investments could serve as a foundation for greater performance growth in the future.
* This article has been translated by AI.
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