"The release of ChatGPT in November 2022 unleashed an artificial intelligence (AI) revolution, catapulting Nvidia ( NASDAQ:NVDA ) to a 1,000% return as its graphics processing units (GPUs) became essential for AI models. The chatbot's debut highlighted AI's transformative potential, pushing Nvidia's stock from $15 per share (split-adjusted) to over $180. With a market cap exceeding $4.5 trillion, Nvidia stands as the world's most valuable stock."
"Yet, another company has outshined it, delivering a staggering 4,640% return - 4.6 times better than Nvidia's performance - over the same period. That's a remarkable return for a company just selling mobile advertising, but its performance propelled it to new heights and on Sept. 22 it joined the S&P 500 index - replacing MarketAxess Holdings ( NASDAQ:MKTX ). The move underscores its rapid ascent in the tech world and reflects strong market confidence."
"AppLovin seized this opportunity with its Axon 2 platform, launched in 2023, which uses machine learning to enhance ad targeting. This fueled revenue growth from $2.8 billion in 2022 to $4.7 billion last year, a 67% jump. So far this year, revenue hit $2.4 billion, up 74% from the same point a year ago. With earnings at $2.39 per share in Q2, beating estimates by 20%, APP's adjusted EBITDA margin reached 81%, driven by AI-driven efficiencies and outpacing industry norms."
ChatGPT's November 2022 release catalyzed an AI boom that propelled Nvidia to roughly a 1,000% return and a market cap above $4.5 trillion. AppLovin delivered a 4,640% return over the same period and joined the S&P 500 on Sept. 22, replacing MarketAxess. AppLovin's Axon 2 platform uses machine learning to optimize mobile and gaming ad targeting, driving revenue from $2.8 billion in 2022 to $4.7 billion last year and $2.4 billion year-to-date. Q2 earnings were $2.39 per share, beating estimates by 20%, while adjusted EBITDA margin reached 81% due to AI-driven efficiencies.
Read at 24/7 Wall St.
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