雅虎香港財經 3 Stocks That Could Plummet in Value With the Rise of AI
Artificial intelligence, a game-changing technology, has the potential to revolutionize the stock market in the years to come. Due to inevitable advancements in technology, some stocks may experience a surge, while others could face a decline.
Check Out: Charlie Munger — Why 95% of Investors Have No Chance of Beating the S&P 500 Index
Read Next: 4 Genius Things All Wealthy People Do With Their Money
While it is difficult to pinpoint the exact companies that will take a hit, investors might want to monitor the companies mentioned below for their AI strategies and adaptability.
Wealthy people know the best money secrets. Learn how to copy them.
J.C. Penney Company, Inc. (JCPNQ)
AI is revolutionizing the e-commerce sector by enabling highly personalized shopping experiences, efficient inventory management and predictive analytics. As a historically brick-and-mortar business, J.C. Penney has struggled to keep up with online giants like Amazon and AI-savvy retailers like Walmart and Target. J.C. Penney’s financial woes, operational inefficiencies, and lag in technological adoption position it poorly against competitors who are embracing AI, making its stock more vulnerable to future declines.
Learn More: 10 Valuable Stocks That Could Be the Next Apple or Amazon
Wells Fargo & Co. (WFC)
“Just like every other industry, financial services will see a significant disruption in how we build products and services we offer,” said Swarup Pogalur, Wells Fargo’s head of digital and AI capabilities. “But we have a strong position around open banking, meaning as the AI space evolves, we are able to create banking products that are super-charged with AI and be where customers are.”
As AI continues to transform the financial services industry, banks continue to race towards technological advancements, competing for unpredictable market share, facing higher operational costs, and suffering from negative market perceptions, all of which could contribute to a decline in stock value.
General Motors Company (GM)
GM faces the challenge of catching up with more technologically advanced competitors. Additionally, just like its competitors — Ford, Toyota, or any automotive company — GM is simultaneously investing in the development of an “all-electric future,” per Mary Barra, the CEO of GM, as quoted by Columbia Business School. “We’re building a portfolio of electric vehicles that will really give people choice — we think that’s going to be critically important to drive EV adoption,” Barra said.
In other words, automotive companies like General Motors need to keep up with their competitors by continually investing in both AI developments and EV adoption, which can exponentially increase the gap between those falling behind and those that continue to advance.
The Bottom Line
It’s important to note that the stock market is influenced by a myriad of factors, and a company’s ability to adapt to AI is just one of many factors influencing its future performance. Objectively, no one knows how AI will develop in the coming years, so identifying how specific stocks will perform is inherently speculative. Investors should conduct thorough research and consider multiple aspects before making investment decisions.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: 3 Stocks That Could Plummet in Value With the Rise of AI
