China’s stock market appears to be buying into the ChatGPT hype, with local AI stocks flourishing.NurPhoto/Contributor/Getty Images
Chinese AI stocks have been rallying as the market appears to join ChatGPT-driven hype. Computer vision tech group Beijing Deep Glint Technology Co. rose more than 15% Wednesday. The stocks initially disappointed after China’s economy reopened due to weak balance sheets, per BBG. Chinese artificial intelligence (AI) stocks are surging as a wave of ChatGPT hype fans investor enthusiasm toward competitors.
Some AI stocks jumped more than 10% Wednesday, and are in the midst of a rally that has seen others increase their market value by more than half.
Beijing Deep Glint Technology Co., a researcher of computer vision technology and big data analysis, surged more than 15% on the day, and is up more than 60% since the beginning of 2023.
Hanwang Technology Co., a manufacturer of pattern recognition technology, jumped more than 10% Wednesday, taking year-to-date gains above 43%. Facial recognition software firm CloudWalk Technology Co. rose more than 8%, with a 2023 gain of nearly 49%.
The buzzy ChatGPT — an AI writing tool developed by OpenAI — has caused much excitement since its beta version was released in November, touting its ability to do everything from writing children’s books to explaining Warren Buffet’s investment methods.
It’s also caused competitors and investors to scramble to catch up with the burgeoning sector, with Google management issuing a “code red” over the chatbot and redirecting employees to work on AI projects.
Indeed, AI stocks in the US have enjoyed their own bull run since the launch of ChatGPT, with chipmakers Nvidia and Ambarella among companies enjoying double-digit stock rallies.
The recent surge in Chinese AI stocks appears to be in a similar vein, and follows a disappointing month for the shares due to concerns over weak balance sheets and slow progress in delivering ambitious targets, per Bloomberg.
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