This study examines the impact of artificial intelligence (AI) intensity on firm performance using innovation and financial data from U.S. public firms from 1980 to 2021. We find that AI intensity has a significant, non-linear effect on firm market valuation (Tobin's Q), moderated by the uniqueness of a firm's technological portfolio. AI's impact is more pronounced for firms with less differentiated technologies and varies across industry contexts, with stronger effects in R&D-intensive industries and markets with low product rivalry.
