Nvidia has been in the news since generative artificial intelligence (AI) emerged last year with the advent of OpenAI’s ChatGPT. Since then, almost every tech titan has planned to develop their own version of ChatGPT or other generative AI services.
But investing in Nvidia or even one of the tech giants isn’t the only way to follow the AI trend. There are many small, niche companies that are starting to disrupt traditional models across all industries. The exchange office (NASDAQ:TTD), Lemonade (NYSE:LMND)And Pagaya Technologies (NASDAQ:PGY) are three AI-driven stocks that could go parabolic.
1. The Trade Desk: Simplify Advertising
AI may be the most exciting and high-profile trend in the market today, but it’s not the only one. Advertising is also a sensation these days because it meets new technologies. The Trade Desk brings all of these trends together into one incredible, high-growth platform.
Trade Desk activities are simple, yet powerful. It provides an AI-powered marketplace connecting ad buyers and publishers. He considers himself “a catalyst, not a disruptor.”
That’s the bottom line, which shows why his formula is so powerful. It harnesses the power of AI to take what would otherwise be a complex, multi-step process and distills it into an easy-to-use system that delivers real results.
Its buyers include players such as advertising agencies and direct advertisers, and its publishers run the gamut of sellers, from print to social media and streaming. It is a digital business that uses technology to transact, even when the publisher is not a digital medium, such as a print newspaper.
AI is an important part of the model because The Trade Desk uses a vast trove of data to help place ads in the most results-driven locations, which it can determine in seconds. It also provides very detailed reporting, with 200 performance metrics and 300 measurable variables.
The Trade Desk has demonstrated robust growth and increasing profits. Revenues grew 23% year-on-year in 2023, despite inflation pressure. Additionally, it is still in its early stages and has a $900 billion global ad spending opportunity. As advertising evolves with technology, the company has years of growth ahead of it.
2. Lemonade: disruptive insurance
Lemonade most certainly considers himself a troublemaker. It was created for disrupt the insurance industry and provide an improved experience for existing operators. Insurance is an industry ripe for AI disruption because everything is data-driven and still works the way it did a century (and more) ago.
Lemonade works differently in several ways. It onboards customers via chatbots and approves claims digitally, often in seconds. It is a registered B-corp that offers policyholders the opportunity to donate remaining funds to charity.
More importantly, it was built on a digital substrate and is designed to handle a multi-process system. Its infrastructure connects all the pieces so that they fit together seamlessly,…
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