If anyone needed proof that artificial intelligence was more than a passing fad on Wall Street, they got it in 2024.
For a second consecutive year, AI was the phrase on everybody’s lips. The number of companies mentioning “AI” on earnings calls continued to rise after skyrocketing last year. And investors continued to drive up the shares of companies that are already benefiting from AI or are expected to soon: Of the five best-performing stocks in the Russell 1000, three could attribute their meteoric rise this year to artificial intelligence.
Software company Applovin (APP) said advertising revenue grew 66% in the most recent quarter, driven by improvements to its artificial intelligence model “through ongoing self-learning and directed model enhancements.” In the same quarter, Applovin more than tripled its profit. Shares jumped nearly 50% the day after those results were reported, contributing to the stock’s more than 740% rise this year through Friday’s close.
Palantir …