In recent months, the stock market in the United States has seen a remarkable surge in artificial intelligence (AI) application stocks, particularly software firms, that have reached unprecedented heights. One standout example is AppLovin, a company specializing in mobile app marketing and advertising solutions, which recently reported earnings for the fourth quarter of 2024. Following the announcement, AppLovin's stock experienced a soaring increase of over 29%, reaching a staggering $491.80 per share, a historic high. This is striking when compared to its closing price of just $10.53 at the end of 2022, marking an astonishing rise of 4570% over two years. This exponential growth outpaces even that of prominent tech giant Nvidia, which saw its stock price increase approximately eightfold during the same timeframe.

Encouraged by AppLovin's remarkable performance, there was a corresponding bullish trend in the Chinese stock market, particularly among stocks related to its sector. Companies such as Yidian Tianxia and BlueFocus Communications saw their shares rise significantly in response to AppLovin's achievements.

AppLovin's impressive quarterly results demonstrated robust demand in the advertising space, as the company reported a staggering 73% increase in advertising revenue for the fourth quarter, amounting to nearly $1 billion. This surge underscores the potential of AI-driven models to enhance advertising capabilities, providing advertisers with more personalized and effective targeting options. AppLovin, acting as an intermediary in the advertising market, connects various mobile apps with advertisers, effectively monetizing user engagement with those apps. Utilizing its AXON AI advertising engine, the company optimizes ad placement through self-learning algorithms that excel at matching supply and demand in the ad auction process, significantly boosting advertising precision.

Continuing on this mall trend, AppLovin has seen its stock price rise dramatically for three consecutive years, with a 278% increase in 2023, followed by a staggering 713% rise in 2024 as of the year-to-date. Factoring in the after-hours surge in stock price, AppLovin has definitively secured its position at a historical high, reflecting investor confidence in its growth trajectory. This remarkable appreciation has elevated the company’s market valuation to approximately 1.2 trillion yuan when calculated at a forex rate of 7.3.

Another notable AI application stock is Palantir Technologies, which has experienced an impressive increase of over 1700% since the beginning of 2023. As a software company, Palantir's mission is to aid organizations in efficiently integrating their data, enhancing decision-making processes, and optimizing operations. The company's stocks have likewise surged, reaching new record highs, reflecting the broader trend of AI investment in the financial markets.

Moreover, the burgeoning landscape of AI marketing solutions heralds a significant shift in the advertising industry. Analysts attribute AppLovin’s success to its innovative breakthroughs in utilizing AI technology for advertising purposes. The compelling notion is that marketing may represent one of the quickest avenues for businesses to monetize AI innovations. Researchers at Huatai Securities have previously indicated that overseas internet marketing benchmarks are exceeding expectations, validating the effectiveness of integrating AI into advertising models. Companies that have positioned themselves early in this space boast distinct advantages in technological proficiency, data accumulation, channel establishment, and customer outreach, suggesting that they are well-placed to thrive during the current wave of AI advancements.

As the demand for AI-driven marketing continues to expand, the market potential appears promising. Projections indicate that the AI marketing sector in China is expected to experience a compound annual growth rate (CAGR) of 26.2% from 2020 to 2024. According to an analytical report by Jianl Shengbo (168Report), the market size of China's AI marketing sector is anticipated to grow from approximately 20.9 billion yuan in 2020 to around 53 billion yuan in 2024, reinforcing the narrative of a thriving industry fueled by innovation and technology.

In light of these developments, many stocks in the Chinese market are being recognized for their connection to AppLovin's innovative strategies. Data Bao has identified several A-share stocks associated with AppLovin that are worth monitoring. Tianyu Shukong, for instance, leverages intelligent recommendation algorithms as part of its mobile application distribution platform, which currently boasts a total registered user base exceeding 324 million as of its 2024 semi-annual report.

Yidian Tianxia, similarly, uses AI technologies to provide global marketing solutions to advertisers. While its offerings are akin to AppLovin's programmatic advertising solutions, Yidian Tianxia primarily caters to e-commerce clientele. Meanwhile, BlueFocus Communications has launched its "overseas platform business," rolling out AI-driven programmatic platforms, bluex and aidsp, closely paralleling AppLovin's ad technology suite.

Additionally, businesses like Tom Cat, which pioneered mobile internet advertising, and Zhidu Co. Ltd., which uses big data and AI technologies for precision ad placement, also exemplify the growing intersection between AI and digital marketing. These firms demonstrate similarities to AppLovin's model, tapping into the transformative potential of AI to drive growth and revenue.

From a numerical standpoint, the AI-driven advertising sector comprises around 20 stocks with strong growth potential. As of the latest trading session, companies such as Xuan Ya International, Si Mei Media, and Hua Yang United featured market capitalizations under 4 billion yuan. However, stocks with heightened institutional interest include BlueFocus, Yidian Tianxia, and San Ren Xing, reflecting the strengthened performance of these stocks, which averaged nearly an 18% increase since the beginning of the year. Notably, companies like Tianyu Shukong, Zhejiang Wenlian, Fushi Holdings, and Yili Media have all enjoyed considerable gains exceeding 30%. The rapid expansion and performance of AI application stocks suggest a compelling narrative of innovation, growth, and the transformative power of technology within the marketing realm.