OpenAI GPT-4 Launch Hypes Up AI Again: 3 Lesser-Known Stocks You Should Be Watching Right Now

ZINGER KEY POINTS

• Companies either want to be AI enablers or AI adopters to grow revenue and improve efficiency, Morgan Stanley says.
• The AI conversation is only going to grow louder as its use cases and applications increase.

OpenAI, which has stitched up a $10 billion partnership with Microsoft Corp. called GPT-4, on Tuesday.

What Happened: 

GPT-4 is touted as a powerful, new image- and text-understanding AI model. It became available to paying users through ChatGPT Plus, subject to a usage cap. Microsoft confirmed that its new Bing has begun running on GPT-4.

AI All The Way: 

Commenting on the all-pervasiveness of AI, Morgan Stanley analysts said in a note that the firm’s Tech, Media and Telecom 2023 Conference held recently showed that companies either want to be AI enablers or adopters.

They were either trying to innovate and create new technology within the AI space or wanting to adopt the technology to grow topline and improve efficiency, analysts said.

The current AI conversation is revolving around disruption to search engines but it is unlikely to change the status of top search providers, Morgan Stanley said, since the cost of running search queries with the leading generative-language AI app is about seven times higher than the leading paid search option.

Possible Al applications or use cases the firm outlined include:

• Using images to search products in the online marketplace.
• Improving dating apps to make them akin to real-world matchmakers.
• Improving home search by creating realistic virtual tours.
• Potential blood glucose/health monitoring without probing the skin.
• With so much happening on the AI front, the focus shifts to stocks levered to this newest technology. Some of the stocks flying under the radar could break through and emerge into the spotlight in the near- to medium-term. A few of them worth taking a look at include:

1. Duos Technologies Group Inc.: Founded in 2001 and based in Jacksonville, Florida, this company provides intelligent technology solutions to customers in the transportation industry. It touts itself to be an advanced technology company that specializes in machine vision and AI to analyze fast-moving objects. The stock has run up 86% year-to-date, although for the year it is still down about 33%.

2. UiPath Inc.: This robotic process automation, or RPA, software company uses AI to provide a cognitive upgrade for RPA. The stock is a staple in Cathie Wood-run Ark Invest’s portfolio.

The stock is up about 13% year-to-date, although it is in the red over the past year with a 45%+ decline.

3: SoundHound AI Inc.: Santa Clara, California-based SoundHound AI’s voice AI technology processes speech like a human brain. The company went public through a SPAC deal in April 2022. The stock, which ended its debut session at $7.5, shed much of its value through the market meltdown in 2022. It has seen some momentum since the start of 2023.

Criteria used to screen stocks:

• Average trading volume of more than 50,000.
• More than $300 million in market-cap.
• Average analyst rating of Hold or better.
• Potential upside of over 15%.

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Originally Posted March 15, 2023 – OpenAI GPT-4 Launch Hypes Up AI Again: 3 Lesser-Known Stocks You Should Be Watching Right Now