Chinese artificial intelligence stocks are the latest rage in mainland markets as the global frenzy around the Microsoft-backed ChatGPT chatbot fuels speculative bets on the revolutionary computing technology.
Just two months after its launch, ChatGPT — which can generate articles, essays, jokes and even poetry in response to prompts — has been ranked the fastest-growing consumer app in history. it has pushed Google Owner Alphabet Inc. to plan its own chatbot service and use more artificial intelligence for its search engine.
While ChatGPT does not have access to China, mainland investors are still investing in shares of AI technology companies such as Hanwang Technology Co., TRS Information Technology Co., and Cloudwalk Technology Co.
Read also: There will be layoffs from ChatGPT, but traders say they will be fine
The CSI AI Industry Index, which includes large-capitalized companies such as iFlytek Co, is up nearly 17% this year, outperforming the benchmark CSI300 index’s 6% rise.
Certainly, there is no indication that these AI companies are any closer to rolling out a product like ChatGPT. The Closer Search Engine Giant Baidu Inc. Seems With Plans to Complete Its Testing “ernie the bot“in March. Its shares soared more than 15% on Tuesday after making the announcement.
“The industry as a whole speculates on expectations first and only trades on actual results later,” said Zhang Kexing, general manager of Beijing Geely Asset Management.
Shares of Hanwang Technology, which makes products that enable intelligent conversations, jumped their daily range 10% on Tuesday, marking the seventh consecutive session it has reached that range since the market resumed from the Lunar New Year holiday. Has opened since, prices have increased by more than 60%. So far in February.
The company expects to report an annual loss for 2022, but believes it has an advantage over an interface like ChatGPT because its model can deliver more accurate results for customers.
Shares of CloudWalk retreated 5.5% on Tuesday, but have nearly doubled in the seven trading days since the Lunar New Year holiday. On Tuesday, the company cautioned investors, saying that its losses have deepened in 2022, it has not cooperated with OpenAI, and has not generated any revenue from ChatGPT-related services and products.
Other companies revealing their advances in AI technology include TRS Information Technology and Beijing Haitian Ruisheng Science Technology Ltd. Their share prices have also gone up.
The price rise has pushed up the valuation. For example, TRS is trading at around 60 times trailing earnings, while Haitian Ruisheng’s price-to-earnings ratio is over 240.
Retail investor Lu Deyong has bought shares in TRS and iFlytek and wants to profit from the ChatGPT hype.
“ChatGPT is just a hot idea,” he said. However, he does not think “China can realize such a technology in the short term.”
“For our retail investors, we prefer smaller stocks with the concept of making some quick bucks,” Lu said.
The text of this story is published from a wire agency feed without any modification.
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