How to buy ChatGPT stock? An investor must first understand what ChatGPT technology does before investing in it. This brings up an important question: What is ChatGPT?
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
ChatGPT stands for Chat Generative Pretrained Transformer. In simple terms, it is an Artificial Intelligence (AI)-powered chatbot that generates human-like responses to text-based input questions. ChatGPT is a generative AI-based model, developed with deep learning techniques. The chatbot engages with humans in a “conversational manner” using large language model (LLM) training. ChatGPT has revolutionized the way people search online.
Who Founded ChatGPT?
ChatGPT is developed by the AI-based start-up OpenAI, which was co-founded in 2015 by billionaire Elon Musk and Sam Altman. While Musk has left the company to pursue his commitments to his other existing ventures, Altman is at the helm of the world-transforming journey.
ChatGPT is an enhanced version of the GPT-3 language model launched by OpenAI in 2020. The latest version is called GPT-3.5, which promises better human-like responses than the earlier version. Additionally, even though the chatbot has already been trained, it continues to learn new things. ChatGPT continues to learn and grasp human responses and conversations over time and uses the learning in its future dialogues.
What Are the Applications of ChatGPT?
ChatGPT has caught the attention of all ages of users, including students and working professionals like coders. The chatbot can perform a multitude of tasks, including answering questions, writing essays, solving math equations, generating complex codes, producing poetry and other content, translating text from one language to another, etc.
No wonder, the program has seen such frenzy in such a short period of time. OpenAI launched the app in late November 2022, and within five days, it had garnered 1 million users. Moreover, by January 2023, ChatGPT had captured over 100 million monthly active users. OpenAI currently earns revenue by charging developers a licensing fee for using the technology. As of its latest funding round, OpenAI was valued at $20 billion. The company expects to earn revenue of $200 million in 2023 and $1 billion in 2024.
Investing in ChatGPT Stock
Now that we are aware of the numerous uses of ChatGPT and its importance in the search engine domain, the next logical question is whether we can invest in ChatGPT. For those highly impressed by the transformation that ChatGPT promises for the future, investing in ChatGPT could seem like one of the most lucrative opportunities currently available.
Currently, OpenAI is a private company, and hence, it is not possible to buy shares in the company. Having said that, we can buy shares held by private investors or existing employees (received as stock compensation) of the firm if they are available for sale. An investor can do so by registering with reputable brokers that specialize in connecting potential investors with private equity company insiders.
Investing in Other AI-Powered Company Stocks
Several publicly listed companies worldwide are engaged in the development of their own versions of ChatGPT or generative AI-enabled chatbots. As per a Research and Markets report, the global market for search engines is estimated to reach $20.6 trillion by 2027 (a CAGR of 47.8%).
Below, let us look at the three large U.S.-listed companies that are on the cusp of this technological revolution.
# Microsoft (NASDAQ:MSFT)
Technology behemoth Microsoft (NASDAQ:MSFT) seems to be at the forefront of the ChatGPT revolution. Not only is Microsoft one of the biggest players in the AI space, but the company also has direct connections with ChatGPT enabler, OpenAI.
In January 2023, Microsoft announced a multi-billion-dollar investment in ChatGPT maker OpenAI (with a few sources quoting the figure at $10 billion), following its initial two, relatively smaller investments, in 2019 and 2021. Subsequently, just last week, Microsoft held an investor update announcing the integration of ChatGPT into the company’s search engine, Bing, and browser, Microsoft Edge. This combination will enhance Bing users’ ability to search queries with more detailed responses. Microsoft’s Bing search engine currently holds only 9% of the market (as per Statista), but with the ChatGPT integration, Bing may become a larger player in the multi-trillion-dollar search engine market.
Is MSFT stock a Buy, Sell, or Hold?
On TipRanks, MSFT stock commands a Strong Buy consensus rating based on 17 Buys, two Holds, and one Sell rating. The average Microsoft price target of $293.22 implies 11.5% upside potential from current levels. Year to date, the stock is up 9.8%.
# Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG)
Next up in the race is Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), the parent of the world’s most popular search engine Google, streaming platform YouTube, and widely used navigation apps, Waze and Maps.
Interestingly, Google holds approximately 84% of the search engine market (as per Statista), but its position is threatened by Microsoft’s combination with OpenAI. Alphabet has also announced its own version of a conversational AI bot called Bard that will launch soon.
Is GOOGL stock a Buy, Sell, or Hold?
With 27 unanimous Buy ratings, GOOGL stock has a Strong Buy consensus rating on TipRanks. Also, the average Alphabet price forecast of $130.19 implies 37.7% upside potential from current levels. The stock has gained 6.1% so far this year.
# Nvidia (NASDAQ:NVDA)
Chip maker Nvidia (NASDAQ:NVDA) remains one of the prime beneficiaries in the ChatGPT revolution. As the race to become the top-notch player in the ChatGPT space heats up, companies are expected to ramp up the demand for Nvidia’s chips.
Nvidia’s GPUs (graphics processing units) are widely used for training and running AI models such as deep learning and machine learning. With the fast-growing ChatGPT applications, Nvidia products will surely be in high demand in the coming years.
Is Nvidia a Buy, Sell, or Hold?
NVDA stock has a Strong Buy consensus rating based on 22 Buys and five Hold ratings. On TipRanks, the average Nvidia stock prediction of $212.12 implies that shares are almost fully valued at current levels. Moreover, the stock has gained 48.6% so far in 2023.
Here is the list of other ChatGPT stocks that an investor can buy. Click on any ticker to further research the stock and determine whether to add it to your portfolio. An investor can also compare and study ChatGPT stocks through the TipRanks ChatGPT Stocks list.
