Years before it became a household term, artificial intelligence was already embedded in some of the world’s most important technologies – profoundly influencing the market value of the companies that adopted it.
Take Google, for example: over two decades ago, its search engine began integrating smart data-processing algorithms that later evolved into core components of the company’s AI infrastructure. Amazon’s recommendation engines – which suggest “items you may also like” – have also been powered for years by sophisticated machine learning systems. These tools stand as early examples of applied AI: systems that analyze user behavior, anticipate purchasing intentions, and significantly boost both conversion rates and profits.
In recent years – especially with the rise of widely recognized platforms like ChatGPT and Gemini – AI’s influence has become nothing short of transformational. Its impact is now felt not only in daily life around the world but also, just as significantly, in the stock valuations of companies. This includes both those who developed AI-enabling tools and those leveraging AI extensively in their operations.
Nvidia is undoubtedly one of the most prominent examples of this trend. The company, which develops chips for data centers and machine learning models, has consistently outperformed the market for years – and in the turbulent year of 2025, that remains truer than ever.
In fact, Nvidia is far from alone. Other major tech giants are both deeply shaped by the AI revolution and active contributors to it – and their stock prices have benefited handsomely. Google’s and YouTube’s integration of the Gemini engine, Microsoft’s incorporation of Copilot into Office, Facebook’s LLaMA model, and Amazon’s extensive use of AI tools within AWS all serve as strong indicators of the influence AI is having on the share prices of leading companies.
But this impact isn't confined to the tech giants. The influence of AI tools is clearly visible across a wide range of sectors within the business and tech worlds. A prime example is the advertising technology (AdTech) sector. Whether it’s industry heavyweights like Google and Meta or smaller players, AI has become a fundamental tool – one that enables companies to convert vast volumes of big data into real-time insights. The most successful among them are those who know how to harness smart algorithms to do exactly that.
Just as with the major tech giants, AdTech companies are leveraging AI tools to deliver more targeted and efficient results for their clients. The aim is to enhance campaign performance – and naturally, the performance of the AdTech companies themselves. In recent years, leading AdTech firms have made substantial investments not only in AI-powered products but also in foundational infrastructure. This deep-level integration provides them with the flexibility and agility needed to navigate an ultra-dynamic market – one that shifts rapidly and depends on staggering volumes of real-time data.
These advancements have led to major breakthroughs across multiple dimensions of the AdTech ecosystem. Companies are now better able to analyze user behavior, leverage third-party data, and construct precise audience segments for personalized, high-conversion advertising. Advanced real-time bidding (RTB) systems can analyze millions of transactions instantly to generate optimal bids for each impression. AI is also used to detect anomalous behavior and prevent fraud, as well as to optimize campaigns based on customer profiles. All of these tools now rely on sophisticated AI infrastructure.
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The payoff is evident in both business performance and stock value. Industry leaders like Google, Meta, AppLovin, The Trade Desk, PubMatic, and Magnite have all demonstrated significant gains – either in operational results or market valuation – thanks to their effective deployment of artificial intelligence.
The strong link between the use of artificial intelligence technologies and stock performance has become increasingly evident in recent years – not only in the long term, but also in the immediate market response. Specific events can have an instant and dramatic impact on a company’s valuation. There are countless examples. In January 2025, for instance, Cerence – a developer of AI-based software for the automotive industry – announced an expanded partnership with Nvidia, resulting in a 95% surge in its share price in a single day.
Conversely, Chegg’s stock has plummeted by approximately 99% since the launch of ChatGPT, due to direct competition in the online education space. The company was forced to lay off a large portion of its workforce and reassess its long-term viability. In other words, AI doesn’t just boost the value of forward-thinking companies – it can also trigger the effective collapse of those that fail to evolve. And therein lies the opportunity: newer players can gain significant momentum simply by adopting AI technologies more swiftly than their competitors.
The market has not only spoken – it continues to do so loudly and clearly: the implementation of advanced AI tools is now one of the most powerful drivers of business performance and corporate valuation. Companies that innovate and integrate relevant AI applications will continue to lead. Those that fail to adapt may wake up one day to find themselves obsolete – in the eyes of both customers and investors.
- Tal Jacobson is the CEO of Perion.
Yedioth Communications Ltd., the Ynet website and Telegraph Software and Media Solutions Ltd. have no conflict of interest or special interest with respect to the above content. This article does not constitute investment advice and should not be considered a substitute for professional guidance tailored to individual circumstances. The information provided should not be regarded as factual or complete, and reliance on it as such is not advised.