Artificial intelligence (AI) and robotic technology are the focal points of discussion in the earnings conference calls of major companies such as Microsoft, Alphabet, and others on Wall Street this quarter. Investors are looking for evidence that their investments in this emerging technology will yield profitable returns. According to a Reuters analysis of LSEG transcripts, the terms "AI" or "artificial intelligence" were mentioned in 38% of conference calls held by S&P 500 companies in January, an increase from 34% during the third-quarter reporting season. This percentage is consistent with the spike in AI discussions seen in the second quarter. Microsoft, Apple, and Advanced Micro Devices highlighted the success of their generative AI-powered products during recent conference calls. However, investors have expressed concern over the rising costs associated with developing cutting-edge AI features, resulting in a decline in stock prices for Alphabet, Microsoft, and Apple.

The prevalence of AI discussions during conference calls reflects the market's belief that companies at the forefront of this technology stand to benefit the most. This confidence has contributed to the rally in heavyweight stocks such as Microsoft, Alphabet, Nvidia, Broadcom, and others, which reached record highs. The term "AI" has been mentioned an average of 3. 5 times per S&P 500 call in January, compared to 3. 3 times per call during the previous quarter. Alphabet and Microsoft have been leading the pack in terms of AI mentions this month, with 53 and 52 mentions of "AI" or "artificial intelligence, " respectively. They are followed by software seller ServiceNow, with 51 mentions, and AMD with 42 mentions. However, high-flying semiconductor stocks experienced a decline in value after Advanced Micro Devices provided a disappointing revenue forecast for the current quarter, intensifying concerns about sluggish demand for non-AI chips.