With the improvement of large model capabilities and the development of ai infrastructure, ai applications are accelerating their development. Recently, in the Hong Kong and US stock markets, ai application software companies are blossoming, among which the US stock ai marketing company AppLovin has seen its stock price surge continuously after releasing impressive Q3 results, rising 7 times this year, with a market cap exceeding 100 billion dollars.

Since the end of last year, ai has gradually driven the commercialization of the software side, beginning to empower enterprises to achieve performance growth. After the ai hardware sector experienced popularity, the global market's focus has gradually shifted to software, what signals have funds sensed?

The commercialization of ai is accelerating! Software performance in various fields is showcasing its strength.

Since the beginning of this year, many software stocks in the US market have been building momentum and quietly achieving astonishing gains. The most notable among them is the ai + advertising marketing company $Applovin (APP.US)$ , which has accumulated a rise of over 700% since the beginning of the year, far exceeding the less than twice increase of nvidia in the same period.

In addition, the ai + data analysis company $Palantir (PLTR.US)$ AI + restaurant management companies. $Toast (TOST.US)$ All achieved double-digit growth. Among them, the empowerment of ai contributed to high performance growth, active demand from users, and became an important reason for fund favors towards software companies.

AppLovin provides AI advertising marketing solutions for businesses, covering functions including user reach, traffic monetization, advertising creative design, and marketing data monitoring, among other features in the advertising marketing ecosystem. On November 7, AppLovin's third-quarter report significantly exceeded market expectations, with a quarterly income of $1.198 billion, a year-on-year increase of 39%; net income of $0.434 billion, a shocking increase of 300% year-on-year.

It is reported that by utilizing AI advertising software solutions, AppLovin is able to efficiently match supply and demand amid massive advertising auctions. Previously, the company launched its AI advertising engine model AXON 2.0 in the first half of 2023 and developed smart advertising software solutions based on this.

Another company known for its big data analysis, palantir, set a new quarterly profit high in Q3 and raised its full-year revenue and profit guidance, with a significant upward revision that also exceeded expectations. Palantir provides intelligent decision-making assistance to governments and businesses through its two platforms, Gotham and Foundry. The latest product, AIP, helps customers create AI assistants, build agents, and more using large language models.

Behind the strong stock price performance of these ai companies, there is continuous data and financial verification as support, indicating that the performance explosion brought by ai applications is not an isolated case. In addition, the volume of demand and access for ai products is also showing a heated trend. Data statistics show that both web access and app access have maintained good month-on-month growth, with microsoft Copilot achieving a month-on-month growth rate of 87.6%, and the monthly access volume of leading web applications has surpassed 100 million.

How long can the upward momentum of software stocks last, and what other symbols deserve attention?

Previously, semiconductor stocks caught a lot of attention in the AI field, however, as semiconductor stock prices soared to high levels, market profit-taking and wait-and-see sentiment began to rise. After the second half of this year, the phlx semiconductor index seems a bit weak, with growth not matching that of the etf represented by software stocks. $iShares Expanded Tech-Software Sector ETF (IGV.US)$ 。

On the other hand, ai software stocks have made remarkable progress in their commercial monetization capabilities, gradually showcasing their strengths, which has stimulated FOMO sentiment in the market. With the peak season of the fourth quarter approaching, many large corporate clients are preparing budgets for ai software, and this series of catalysts has driven the short-term performance of the software sector.

However, many analysts remain bullish on their performance until the end of the year. Evercore ISI analysts state that although software stocks may be somewhat overbought in the short term, potentially needing to digest some of the emotional momentum after the elections, the industry still has appeal and is not expected to see a pullback before the end of the year.

How should one select stocks for the ai application software company "multi-point flowering"? In response, several institutions have provided suggestions. In terms of industry sectors, citic sec stated that most companies that have made significant progress in ai application implementation are currently toB companies. The challenges of large models toB are lower, and the value created for B-end clients can be quantified more clearly. Additionally, fields such as recommendation systems and intelligent decision-making can also bring growth opportunities to companies.

The bank pointed out that some representative ai publicly listed companies in certain fields include AppLovin, palantir, and others. $Innodata (INOD.US)$ 、 $Salesforce (CRM.US)$ 、 $Shopify (SHOP.US)$ 、 $Duolingo (DUOL.US)$ In fields such as recommendation systems and intelligent decision-making, ai can still bring growth opportunities for companies, so the demand for computing power is not limited to large models.

Open-source securities suggest that in the future, attention can be sustained on multi-modal large models such as video generation, AI agents, AI advertising, AI education, and AI social companionship new products' progress and commercialization prospects. Trust Securities research reports that marketing might be the fastest field for AI commercial monetization.

In the US stock market, $Software - Application (LIST2470.US)$ Includes many vertical ai software stocks, with recent top performers including $Atlassian (TEAM.US)$ 、 $C3.ai (AI.US)$ 、、 $Datadog (DDOG.US)$ And popular companies,

In addition, tracking a basket of software stocks ETF$iShares Expanded Tech-Software Sector ETF (IGV.US)$ Has risen more than 12% since the beginning of this month, with its hold positions including $Salesforce (CRM.US)$ 、 $Oracle (ORCL.US)$ 、 $Microsoft (MSFT.US)$ 、 $ServiceNow (NOW.US)$ 、 $Adobe (ADBE.US)$ Leading ai software companies are also worth paying attention to.

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