Stocks With 'AI' In the Name Are Soaring: Could It Be The Next Crypto-, Cannabis-Style Stock Naming Craze?

For the past few years, many companies have pivoted their visions to include a new, trending topic. At one point it was crypto, blockchain or NFTs and before that it was cannabis. Now, it might be artificial intelligence. 

What Happened: When Eastman Kodak Co KODK announced its own cryptocurrency in 2018, the stock tripled. There were other companies, including iced tea distributor Long Island Iced Tea Corp., that jumped on the crypto craze and saw their stocks go up at that time. 

In the cannabis realm, Scott's Miracle-Gro Co SMG was among the companies that showed interest.

Now, we could see a similar phenomenon with AI.

C3.Ai Inc AI is an AI company that focused on technology for years, not one which just hopped on for a trend. But, its stock has still benefited from the recent AI craze, up more than 80% this month. Similarly, SoundHound AI Inc SOUN is a company focused on AI speech recognition tools. Its stock was up more than 65% in the month of January. 

Read Also: Why C3.Ai Shares Are Trading Higher Today

Why It's Important: AI has been a hot-button issue for those in the tech circle for decades but has recently reemerged in the public eye following the parabolic rise of ChatGPT, an online search engine built by OpenAI. 

More than 10,000,000 users visited ChatGPT in the first 40 days. Microsoft Corp MSFT recently announced its third investment in OpenAI.

But Microsoft isn’t the only company rushing to throw its hat into the AI ring. 

Last week, Buzzfeed Inc.’s BZFD stock skyrocketed following a report the company would use AI to generate content. Investors buying the stock for that particular reason hoped the company was able to save money while producing content through AI. 

Read Next: Chinese ChatGPT In Works? Google Rival From Asia Reportedly Eyes Launch In March

Photo: Andrey Suslov via Shutterstock