"What investors may have forgotten by now is how awful 2022 was for the markets. That year, the S&P 500 fell by more than 19%. It was the hype and excitement around artificial intelligence (AI) that led to a huge turnaround for the stock market. When ChatGPT was launched on Nov. 30, 2022, it wasn't long afterward that companies began promoting products and services that used generative AI capabilities."
"Nvidia played a big role in AI with companies relying on its advanced chips for developing their own AI models and products. Since the launch of ChatGPT, the tech company's stock soared by 1,000%. But as incredible as that is, there are three AI stocks that have performed even better over that time frame: AppLovin , Rigetti Computing , and Palantir Technologies . Here's why they have skyrocketed thanks to AI, and how strong their returns have been since then."
"AppLovin is in the ad tech business, helping developers monetize their apps. With the help of AI, AppLovin has been able to do that incredibly well, and it has resulted in monstrous growth, to the point where it sold off its mobile gaming segment to focus solely on advertising. Last year, advertising revenue grew by 75% to $3.2 billion, while revenue from its apps segment rose by just 3%, to $1.5 billion."
AI enthusiasm after the Nov. 30, 2022 ChatGPT launch helped reverse the 2022 market decline and sparked a major rally in technology stocks. Nvidia's advanced chips became central to AI model development, driving its stock roughly 1,000% higher. Three AI-focused companies—AppLovin, Rigetti Computing, and Palantir Technologies—delivered even stronger returns over the same period. AppLovin pivoted from mobile gaming to concentrate on ad tech, with advertising revenue up 75% to $3.2 billion while apps revenue rose 3% to $1.5 billion. Regulatory scrutiny and short-seller allegations prompted an SEC inquiry into AppLovin's data practices and a pullback in the stock amid high valuation.
Read at The Motley Fool
Unable to calculate read time
Collection
[
|
...
]