The AI industry has been a significant factor in propelling the technology sector to new heights. It has been a major draw for investors due to the improvement and creation of new and innovative technologies that could continue to offer considerable returns.
Many different stocks related to generative AI have seen their share prices multiply over the last year. This industry could be heating up, and these companies may just be beginning to experience this AI boom.
Below are three companies that have greatly benefited from the booming AI movement, which has drawn investors into the technology industry. These stocks have seen their share prices double, triple or even quadruple in the last year and could continue growing within this expanding industry.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) manufactures server and data center infrastructure such as workstations, full racks, blades and storage systems. It also provides software services. Its products are used primarily within the cloud computing and generative AI industries.
Over this past year, its share price has risen almost fourfold due to impressive earnings growth, primarily in its data center products.
On April 3, SMCI reported earnings for the third quarter of fiscal year 2024, stating that total revenue increased threefold to $3.9 billion year-over-year. Net income rose from $85 million in Q3 FY 2023 to $402 million in Q3 FY 2024.
Super Micro Computer is a rapidly growing technology company with impressive data center revenue. For the fourth quarter of FY 2024, SMCI anticipates total revenue will be between $5,1 billion and $5.4 billion. Total expected revenue for the full year 2024 ranges from $14.3 billion to $14.7 billion.
Celestica (CLS)
Celestica (NYSE:CLS) is an electronics manufacturing company that provides a wide range of connectivity and other cloud-based solutions within industries such as aerospace and defense, healthcare, communications and industrials.
Over this past year, its share price has increased by over 275%.
On April 24, Celestica reported earnings for the first quarter of 2024, stating that total revenue increased by 20% to $2.21 billion and net income more than quadrupled to $102 million compared to the previous year.
Celestica also reported that total revenue guidance 2024 is expected to be $9.1 billion, up from a previous estimate of $8.5 billion. Revenue for the second quarter of 2024 is likely to be in the range of $2.175 billion to $2.325 billion.
The stock may continue to beat analyst expectations regarding its first-quarter earnings report. Celestica is also a business that has taken advantage of hyperscaler opportunities such as Google (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), which provide impressive data center revenue.
Applovin (APP)
AppLovin (NASDAQ:APP) is an application software company that provides monetization and marketing services for its applications, such as MAX, AppDiscovery and Adjust.
Over the past year, its share price has more than tripled due to impressive revenue growth and the unveiling of new AI products such as the Axon 2.0 engine, software that provides advertisements for primarily mobile gaming applications and e-commerce capabilities.
AppLovin reported earnings on May 8 for the first quarter of 2024, stating that total revenue increased by 48% year-over-year. A net loss of $4.5 million was reported for Q2 of 2023, which shifted to a net income of $236 million for Q1 of 2024.
AppLovin is a company that has profited heavily from the booming AI industry. Investors will keep a close eye on the stocks to see if this large amount will persist.
As of this writing, Noah Bolton held a LONG position in CLS. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.