The big rally in artificial intelligence stocks may have finally come to an end, but the steady pulse of artificial intelligence news continues.software company stocks C3.ai (AI) and Palantir (PLTR), two of the hottest AI stocks of 2023, have been falling since June 16th.
X
AI stocks fell after Thursday's C3.ai investor day as the software maker did not announce any new AI customers. On the stock market today, AI stock fell 10.8% to close at 33.39. PLTR stock fell slightly to 14.03.
“C3 shared a number of statistics demonstrating strong customer activity levels this quarter,” JPMorgan analyst Pinjarim Bora said in a note.
He said: “The company noted 'significant interest' from customers in participating in the pilot, and C3 reported a quarterly increase in the fiscal first quarter (July) compared to the same period last quarter. Cumulatively, we have closed three times as many pilots.”
Bora added: “While we are encouraged by the traction of business around net/net and pilots, we see evidence of pivoting pilots to assume the premise of consumption-based pricing models. I'm waiting,” he added.
AI stocks remain in rarefied air
A pullback in AI and PLTR stocks might have been expected after their recent rally. As of Thursday's market close, AI stock was up 234% in 2023. PLTR stock rose 118%.
Palantir and C3.ai are not alone in their recent decline.Computer network company stock Arista Networks (ANET) is another popular AI stock, down about 14% since May 30th.Also, chip maker stocks Nvidia (NVDA) It's been flat for the past week or so.
AI stocks: HPE orders increase
meanwhile, hewlett packard enterprise (HPE) is partnering with German startup Aleph Alpha to bring AI capabilities to its cloud-based GreenLake data analytics service. Aleph Alpha has developed Luminous, a large-scale language model. LLM is key to the rise of generative AI.
HPE GreenLake for Large Language Models provides the ability for customers to upload their own data to train and tune their own customized AI models. The new AI service runs on HPE Cray supercomputers. HPE announced its AI public cloud service Tuesday at the Discover 2023 conference in Las Vegas.
AI Services are currently available to a small number of customers. It is expected to be widely available in North America in the second half of 2023 and in Europe in 2024.
HPE said its AI product pipeline now has a $3 billion order book, up from $800 million in the previous quarter.
Startup Vectra AI gains market share
Meanwhile, privately held cybersecurity company Vectra AI hosted an online webinar to educate Wall Street analysts about its AI-powered threat detection and response platform. Competing with Vectra is palo alto networks (PANW), crowdstrike holdings (CRWD) and other XDR markets. XDR stands for “Extended Detection and Response.”
And Vectra is gaining market share, Wall Street analysts say. During the presentation, Vectra's management revealed that Vectra has more than 1,000 of his customers and annual recurring revenue of “more than $100 million.” Vectra's last capital increase took place in April 2021, valuing the company at $1.2 billion. Vectra has not announced plans for an initial public offering.
In other places, Cisco Systems (CSCO) announced the fourth generation of its Silicon One family of cloud computing network devices. “The chip targets AI use cases and is currently being tested by five to six major hyperscalers,” Evercore ISI analyst Amit Daryanani said in a report.
Hyperscalers are large cloud service providers that include large technology companies like Facebook's parent company meta platform (meta). The new Cisco AI devices are the Silicon One G200 and Silicon One G202 network chips.
SandboxAQ stealth mode has ended
On the other hand, the cloud computing unit alphabet(GOOGL) Google also had some AI news. Google Cloud has launched an AI-based service to detect money laundering for financial companies.
Finally, startup SandboxAQ announced: AstraZeneca (AZN), sanofi (SNY) and several other biopharmaceutical companies are using AI and quantum-powered solutions from its new molecular simulation arm, AQBioSim.
SandboxAQ, which was spun off by Google in 2022, said it is also collaborating with the University of California, San Francisco's Institute for Neurodegenerative Diseases and other university labs. Quantum computing services are available to researchers from Google and Amazon Web Services (Google's cloud division). Amazon.com (AMZN).
But commercial quantum computing may still be a decade away.
Follow Reinhard Krauss on Twitter @reinhardtk_tech Get the latest information on 5G wireless, artificial intelligence, cybersecurity, and cloud computing.
You may also like:
IBD Digital: Get access to IBD's premium stock lists, tools and analysis now
Learn how to time the market with IBD's ETF Market Strategy
IBD Live: A new tool for daily stock market analysis
Want to make quick profits and avoid big losses? Try SwingTrader
