The Appen Ltd (ASX: APX) share price is having a rocking day, with the ASX 300 tech share up 10% in earlier trading to a high of $2.91.
Appen shares are now trading for $2.88, up 9.51%.
There is no price-sensitive news from the artificial intelligence data services company today.
Image source: Getty Images
What's pushing up this ASX 300 tech share today?
With no news from the company, we are forced to guess what's behind the ASX 300 tech share's leap.
There are a couple of obvious possibilities.
Firstly, Appen operates in the exciting artificial intelligence (AI) space and is one of the most well-known ASX AI shares.
Appen creates AI products and services for many of the world's largest tech companies. It provides and enhances data used for the development of machine learning and AI products.
Lately, the AI industry has been abuzz over the success of OpenAI's ChatGPT, which can create extremely high-quality content on any topic in a matter of minutes.
Many other major tech companies are rushing to create their own versions of the content generator.
Just yesterday, one of Appen's major customers, Microsoft Corp (NASDAQ: MSFT), held a press event to show off a new AI-powered update to its Bing search engine and Edge browser.
Microsoft said, "Today, we're launching an all new, AI-powered Bing search engine and Edge browser … to deliver better search, more complete answers, a new chat experience and the ability to generate content."
If the big tech companies are increasing their investment in AI, that is great news for Appen.
Secondly, if Appen's customers are making good money, they can afford to invest more in innovation.
That's why last week, the Appen share price got a bounce on the back of a positive earnings report from another major client, Meta Platforms Inc (NASDAQ: META).
So, perhaps the ASX 300 tech share is riding on some optimism in the AI space right now.
AI certainly has a big future, with the global market expected to grow at a compound annual growth rate (CAGR) of 38.1% from 2022 to 2030, according to Grand View Research.
The market was valued at US$60 billion in 2021, according to Bloomberg.
Appen's other major customers include Google, Amazon.com, Inc (NASDAQ: AMZN) and Airbus SE (EPA: AIR), who all rely on Appen to power their AI applications.
What's the latest news from Appen?
Appen has a new president and CEO, with Armughan Ahmad officially taking over a month ago.
Ahmad replaced Mark Brayan, who will leave the company on 28 February. Brayan was CEO for seven years. His resignation on 15 December followed a disastrous period for the company.
The Appen share price fell more than 90% from an all-time high above $40 per share in August 2020 to $2.63 on 15 December.
The Appen share price rose by 1.5% on the day the company announced Brayan's resignation. ASX investors appear pleased about getting new blood at the top of the tree.
All eyes will be on Ahmad on 27 February when Appen releases its full-year 2022 results. Ahmad and CFO Kevine Levine will host the briefing at 11am.
Ahmad has more than 25 years of global experience in the tech industry.
Before joining Appen, he was the president and managing partner of digital at KPMG Canada.
Prior to that, he was the senior vice president and general manager at Dell Technologies INC (NYSE: DELL).
Last month, Ahmad said Appen was well-positioned to help its clients build "mission critical AI applications that deliver new customer experiences".
He commented:
The pace of AI is accelerating with new innovation in generative AI like ChatGPT and DALL.E from Open AI.
As a fast-growing AI industry leader … Appen is well positioned to evolve with the changing needs of AI, and I believe we have a unique opportunity to deliver an ethical, trusted AI for good.
As the leading provider of data for AI, we have a responsibility to set the standard for excellence and integrity in the industry. We will continue to push the boundaries of AI and make a positive and sustainable impact on the world."
