According to stock market research outfit, companies that mentioned AI in their earnings calls saw an average increase in their stock price of 4.6 percent, compared with an average stock price rise of only 2.4 percent for companies that didn't mention the magic letters.
WallStreetZen said it gathered the quarterly earnings call transcripts of S&P 500 companies from between Q1 2022 and Q2 2023. It then counted the number of mentions of AI and related terms such as machine learning or robots during the calls, and analyzed each AI-related statement using SentiStrength, a sentiment analysis tool.
Next stop was looking at the three-day change in the price of each company's stock, beginning with the date the transcript was released. Overall, 67 percent of companies whose execs mentioned AI on the earnings call saw a rise in the stock price. Among tech companies, the figure was 71 percent of companies, with an average increase of 11.9 percent, according to WallStreetZen.
Adobe, Meta, and Nvidia are among the top companies whose stock prices increased the most after mentioning artificial intelligence, with Nvidia's stock increasing by 26.3 percent after AI was mentioned 150 times in their earnings calls.