ChatGPT Is Causing a Stock-Market Ruckus

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By Charley Grant

(The Wall Street Journal) — The rise of artificial intelligence is taking the tech world by storm. The technology is also making waves on Wall Street.

It is early days for so-called generative AI, a form of artificial intelligence that can conjure original ideas in the form of text, video or other media. But the tool has caused a stir in companies, schools, governments and the general public for its ability to process massive amounts of information and generate sophisticated content in response to prompts from users.

Big technology companies are investing billions of dollars in the technology. Startups are raising cash and trying to develop business models using AI at a rapid pace.

Investors are gauging the extent to which AI’s arrival will upend companies, industries and contemporary business practices—and placing bets accordingly. That has sent stocks swinging wildly in both directions: Chip maker Nvidia’s shares are surging, while shares of study-materials company Chegg decrease; red down pointing triangle have plummeted. Enthusiasm for the potential of AI is one reason big tech companies are among this year’s strongest performers.