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Artificial Intelligence in Finance: Valuations and Opportunities

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  • Bonaparte, Yosef

Abstract

This study examines the financial opportunities arising from the new Artificial Intelligence (AI) innovation. Firstly, we present the current and projected AI revenue for the upcoming decade. Secondly, we introduce a valuation model for AI stocks and ETFs, incorporating both AI fundamental and sentiment analyses. We offer two primary models for stock valuation adoption. Our analyses can serve as a benchmark framework for stock valuations and their influence on AI technology. This study holds particular significance as we witness an enthusiastic embrace of AI technology, potentially signaling the financial market's entry into an AI bubble.

Suggested Citation

  • Bonaparte, Yosef, 2024. "Artificial Intelligence in Finance: Valuations and Opportunities," Finance Research Letters, Elsevier, vol. 60(C).
    • Handle: RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012230
    DOI: 10.1016/j.frl.2023.104851
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    References listed on IDEAS

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    1. Saggu, Aman & Ante, Lennart, 2023. "The influence of ChatGPT on artificial intelligence related crypto assets: Evidence from a synthetic control analysis," Finance Research Letters, Elsevier, vol. 55(PB).
    2. Dowling, Michael & Lucey, Brian, 2023. "ChatGPT for (Finance) research: The Bananarama Conjecture," Finance Research Letters, Elsevier, vol. 53(C).
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    Cited by:

    1. Zhu, Qingyuan & Sun, Chenhao & Xu, Chengzhen & Geng, Qianqian, 2025. "The impact of artificial intelligence on global energy vulnerability," Economic Analysis and Policy, Elsevier, vol. 85(C), pages 15-27.
    2. Siddik, Abu Bakkar & Li, Yong & Du, Anna Min, 2024. "Unlocking funding success for generative AI startups: The crucial role of investor influence," Finance Research Letters, Elsevier, vol. 69(PB).
    3. Potrykus, Marcin, 2024. "Dot-com and AI bubbles: Can data from the past be helpful to match the price bubble euphoria phase using dynamic time warping?," Finance Research Letters, Elsevier, vol. 67(PA).
    4. Nikoletta Poutachidou & Alexandros Koulis, 2025. "The Investment Styles and Performance of AI-Related ETFs: Analyzing the Impact of Active Management," FinTech, MDPI, vol. 4(2), pages 1-17, May.
    5. Bechir Raggad & Elie Bouri, 2025. "Artificial intelligence and clean/dirty energy markets: tail-based pairwise connectedness and portfolio implications," Future Business Journal, Springer, vol. 11(1), pages 1-24, December.

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    Keywords

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    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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