Investors Seeking a Cheaper AI Stock Should Consider The Trade Desk (TTD)

Investors looking to capitalize on the booming artificial intelligence (AI) market may want to consider a relatively cheaper alternative to Nvidia. The Trade Desk (TTD) is emerging as a top AI stock thanks to its innovative use of AI in the digital advertising space.

The Trade Desk provides a cloud-based, data-driven, programmatic advertising platform that leverages AI to help advertisers optimize their ad campaigns and reach their target audience more effectively. The company’s AI tools, such as Koa and Kokai, have been instrumental in driving growth and increasing advertisers’ return on investment.

In 2023, The Trade Desk saw a 23% increase in revenue to $1.95 billion, outpacing the growth in digital ad spending. The company’s latest results for the first quarter of 2024 show a 28% year-over-year jump in revenue, with adjusted earnings beating expectations.

With digital ad spending expected to increase by 13.2% in 2024, The Trade Desk is well-positioned to capture a larger share of the market. Analysts have been increasing their growth expectations for the company, highlighting its potential for long-term growth.

Trading at 21 times sales, The Trade Desk is a cheaper alternative to Nvidia, which commands a sales multiple of 36. If the company can maintain its current sales multiple and achieve $3.52 billion in revenue by 2026, investors could see a 72% jump in market cap.

Overall, The Trade Desk’s innovative use of AI in the digital advertising space makes it a compelling option for investors looking to capitalize on the AI boom. With a massive addressable opportunity ahead of it, The Trade Desk could be a top AI stock to watch in the coming years.