Investment Opportunities in the AI Wave: Why Are GPT Concept Stocks Worth Watching?

The rise of artificial intelligence is no longer a topic of the future but a current market reality. Since the launch of ChatGPT in November 2022, it has accumulated 100 million users in just two months, a growth rate that even surpasses TikTok’s record of nine months to reach the same milestone. This not only reflects the market’s hunger for this technology but also signals a profound industry revolution brewing.

How AI Technology Is Reshaping the Market Landscape

The emergence of ChatGPT has made people realize that AI has moved from the laboratory to everyday applications. This technology can engage in deep conversations, content creation, coding, and even provide professional consulting, with a scope beyond imagination.

From a commercial perspective, large retail companies have begun integrating such technologies into their core services. Take Carrefour as an example: they use GPT-4 within their app to offer intelligent shopping suggestions. Users only need to describe their needs (e.g., “500 yuan budget, family of 5, weekly meal plan”), and the system automatically generates a shopping list. This personalized, efficient service experience is becoming the new normal.

Knowledge-intensive industries such as legal, financial, and software development are also facing transformation. Tasks like automated document processing, case studies, and financial statement preparation can significantly reduce labor costs while providing 24/7 uninterrupted service. This means a comprehensive improvement in operational efficiency and a redefinition of competitive advantages.

Why GPT Concept Stocks Are Becoming Investment Foci

Qualitative Shift in Market Demand

ChatGPT is hailed as the most disruptive technology since the internet. When such AI tools become standard for users and enterprises, the underlying demand driving their operation begins to grow geometrically—chips, computing power, cloud services, data centers—all parts of the industry chain are activated.

Strategic Race Among Tech Giants

Google launched Bard, Baidu introduced Wenxin Yiyan, and Microsoft deeply integrated OpenAI. The intensity of this technological competition speaks volumes. Each tech giant is increasing investments in related fields to avoid marginalization. This internal pressure translates into market demand, continuously fueling the prosperity of the relevant industry chain.

Capital Market Enthusiasm

Take Microsoft as an example: driven by hype around ChatGPT, its stock price surged from $250 at the beginning of 2023 to $382.86, a 53% increase. This financial return attracts continuous capital inflow into this sector.

Three GPT Concept Stocks Worth Watching

Microsoft (MSFT): The Direct Beneficiary

As a strategic investor in OpenAI, Microsoft is the most authentic GPT concept stock. Beyond capital ties, Microsoft has integrated this technology into Bing search engine, successfully reversing the decline in market share in May 2023—Bing’s market share rose from 6.81% to 9.19% within two months, while Google’s share fell from 87.65% to 83.49%.

Azure, as OpenAI’s exclusive cloud partner, allows Microsoft to earn ongoing revenue from OpenAI’s business expansion. Reports indicate OpenAI is raising funding with a valuation possibly reaching $100 billion, which significantly supports Microsoft’s long-term value.

From a technical perspective, Microsoft’s weekly chart shows a MACD golden cross at the end of October, with the 10-day moving average forming an important support near $360. If the stock maintains a high-level oscillation pattern, it may continue upward; if it breaks below, the next support is around the $340 mark.

NVIDIA (NVDA): The Hidden Winner

The computational demand of GPT is enormous, directly boosting the demand for GPU chips. As a leading global GPU manufacturer, NVIDIA almost becomes an unavoidable player in this race—regardless of who ultimately wins in AI, NVIDIA’s chips are essential.

The stock performance also reflects this trend. NVIDIA’s stock surged over 240% from early 2023 to the end of the year, becoming a standout among tech stocks. Technically, since August, the stock has entered a high-level consolidation. Although the weekly MACD shows a death cross, the price has not weakened significantly; instead, it has hit new highs in a divergence pattern, with moving averages continuing upward. Investors can watch whether the MACD re-forms a golden cross as a buy signal.

Baidu (BIDU): The Representative of Domestic AI

As China’s largest search engine company, Baidu also feels the impact of the AI wave. Its Wenxin Yiyan has sparked discussions externally, but its market performance remains strong. In 2023, Baidu’s stock outperformed peers, and its user base is rapidly expanding.

Data shows that the daily calls to Wenxin’s large model reach tens of millions, serving over 10,000 enterprises monthly. By November, the user count exceeded 70 million, and it recently passed China’s national large model standard testing. This indicates that within China’s independent internet ecosystem, Baidu holds unique advantages.

On the technical side, Baidu’s weekly chart shows a death cross, but further observation is needed to confirm a true trend reversal.

How to Participate in GPT Concept Stock Investment

Long-term Allocation

For investors inclined to hold long-term, directly purchasing quality GPT concept stocks is a classic choice. The US stock market has relatively low entry barriers, suitable for dollar-cost averaging strategies. Additionally, a GPT concept ETF (ticker: CHAT) has been launched to help investors diversify risk across the sector.

Flexible Trading

Short-term fluctuations in GPT concept stocks are often significant. Various financial derivatives are available to capture short-term opportunities. Through two-way trading mechanisms and leverage, investors can seek trading opportunities under different market scenarios, but must pay attention to risk management.

Balancing Outlook and Risks

The emergence of ChatGPT has broken Google’s monopoly in search, a breakthrough that will be recorded in tech history. However, history also reminds us that once-dominant internet giants like Yahoo and Sina were eventually replaced by new forces. Therefore, caution is advised in GPT-related investments, with timely assessment of companies’ competitive positions.

In contrast, hardware providers like NVIDIA face relatively lower risks, as the demand for computing power remains certain regardless of how AI applications evolve.

From an industry lifecycle perspective, the GPT concept is still in its growth phase, with market demand accelerating. For investors, this presents a relatively good entry window. Once the industry matures, re-evaluation and adjustment of allocations may be necessary.

Summary

Investing in GPT concept stocks is attractive due to the certainty of demand, clear business prospects, and the advantage of being in the growth phase. Investors should choose strategies aligned with their risk tolerance, combining fundamental and technical analysis to make decisions. Whether holding long-term or trading short-term, maintaining sensitivity to market changes is essential.