Since the inception of ChatGPT over 15 months ago, the victors of the AI revolution are stepping into the limelight, with AI hardware leaders such as Nvidia taking center stage. The demand for Nvidia’s GPUs, crucial for running sophisticated models like ChatGPT, has propelled the company’s revenue by over 200%, with profits scaling even higher. Riding on Nvidia’s success are allies like Super Micro Computer and Arm Holdings, further fueling the prominence of AI in the tech realm.
Even chip giants AMD and Intel have surged in anticipation of the impending AI boom, despite yet to fully reap the financial benefits.
Cloud infrastructure behemoths, innovative AI startups, and tech firms are not merely amassing GPUs for storage; they are gearing up to unleash revolutionary applications and software solutions. The horizon seems promising for software companies to emerge as the subsequent torchbearers in the AI saga. Dive in to discover two such companies set to ride the tide of the burgeoning tech wave.
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The Data Dynamo: MongoDB
Standing tall as a frontrunner in NoSQL databases, MongoDB has carved a niche in organizing data that defies conventional tabular formats.
There’s an inherent synergy between MongoDB’s database prowess and the untapped potential of generative AI, promising seamless data navigation, model execution, and adaptive transformations.
While MongoDB has begun integrating generative AI functionalities into its suite, the full force of AI-driven tailwinds is yet to be fully harnessed by the company. CEO Dev Ittycheria elucidated on the AI implications for the business during a recent earnings call, shedding light on the three-tier AI stack and MongoDB’s strategic position within it.
As MongoDB’s clientele transitions from AI experimentation to implementation, the company is poised to reap the benefits of heightened demand, establishing itself as a long-term beneficiary of the AI revolution. While this transformation may take several quarters to unfold, MongoDB’s recent revenue surge of 27% speaks volumes of its growth trajectory.
The Linguistic Luminary: Duolingo
Duolingo, a luminary in the realm of language learning apps, weathered initial concerns that AI might disrupt rather than fortify its business model.
Although a brief market dip followed Chegg’s disclosure of customer migration to ChatGPT, investors soon recognized Duolingo’s potential as an AI victor, propelling its shares to new heights with stellar growth.
Rapidly integrating AI tools within its app ecosystem, Duolingo unveiled a conversation mode powered by OpenAI’s GPT4, forming the cornerstone of its premium offering, Duolingo Max. The company has also ventured into AI-generated lesson construction, leading to some workforce optimizations.
Envisioning a future enriched by generative AI, Duolingo is poised to unlock new dimensions in language learning, offering interactive conversation partners, tailored lessons, and expanded educational horizons beyond languages into literacy, math, and music. This strategic foray promises broader user outreach at reduced costs and potential expansion into lucrative educational sectors.
Guided by an adept leadership well-versed in AI technology, Duolingo’s trajectory is on an upward incline, with CEO Luis von Ahn’s illustrious tech background and innovations adding further credence to its growth potential and market reach.
While Duolingo stock may bear a premium, the company’s robust growth, improving profitability, and AI-driven market expansion paint a promising picture of sustained success.
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Suzanne Frey, Alphabet executive, sits on The Motley Fool’s board of directors. Jeremy Bowman holds positions in MongoDB. The Motley Fool has stakes in and recommends Advanced Micro Devices, Alphabet, Duolingo, MongoDB, Nvidia, and Oracle. The Motley Fool endorses Chegg and Intel and offers options for Intel. The Motley Fool abides by a disclosure policy.
The author’s views and opinions expressed herein do not necessarily align with those of Nasdaq, Inc.
