In a recent revelation, WallStreetZen, a stock market research outfit, has reported that companies mentioning Artificial Intelligence (AI) in their earnings calls have seen an average stock price increase of 4.6%. This is in stark contrast to companies that did not mention AI, which saw a much smaller average stock price rise of only 2.4%.
The Numbers Speak
According to a study from Wall Street Zen, the number of AI mentions in stock earnings calls has skyrocketed in 2023. This surge in AI mentions correlates with an average stock price increase of 4.6% for companies that included AI in their earnings discussions. On the other hand, FactSet reported that S&P 500 companies mentioning “AI” in their second-quarter earnings calls saw their shares dip by 0.8% since June 30, but rise by 13.3% since December 31 of the previous year.
The AI Hype and Investor Sentiment
The buzz around AI is not just limited to tech companies. Mentions of AI, machine learning, and related terms have soared in the latest round of company earnings calls, according to a Bloomberg News analysis. This trend suggests that AI is increasingly becoming a focal point for investors, who are keen to invest in companies that are at the forefront of technological innovation.
AI’s Growing Influence
A report by Benzinga on September 5, 2023, highlighted that there were over 7,000 mentions of AI in Q2 earnings calls. This indicates that AI is not just a buzzword but is earning a spot in the list of factors that influence stock prices.
Key Takeaways
- Companies mentioning AI in earnings calls have seen an average stock price increase of 4.6%.
- The number of AI mentions in earnings calls has skyrocketed in 2023.
- AI is increasingly becoming a focal point for investors.
- Over 7,000 mentions of AI were recorded in Q2 earnings calls, indicating its growing influence on stock prices.
By incorporating AI into their strategic discussions during earnings calls, companies are not only showcasing their commitment to innovation but also positively influencing their stock prices. As the data suggests, mentioning AI in earnings calls could be a smart move for companies looking to attract investor attention and boost their share prices.
