Artificial Intelligence Stocks on the Brink of Upward Surges: A Look at the Leading Contenders
In the rapidly evolving world of technology, two companies – Lemonade (LMND) and Applied Digital (APLD) – are making significant strides in the artificial intelligence (AI) sector. While specific growth rate projections for these firms are not currently available, the broader AI market is projected to soar, with the global AI market expected to grow from $189 billion in 2023 to $4.8 trillion by 2033, according to a report by UNCTAD.
Lemonade, an insurtech company, is leveraging AI extensively in its business operations. The company's AI chatbot, Maya, is used for providing quick quotes on policies, and about 55% of Lemonade's claims are fully automated. Over 40% of Lemonade's customer service tickets are handled with AI, contributing to a decrease in the gross loss ratio from 88% in the third quarter of 2023 to 73% in the first quarter of 2025. Lemonade's revenue rose by 27% year over year to $151.2 million in the first quarter, and its in-force premium (IFP) increased by 27% to $1.0 billion in the same period.
Applied Digital, on the other hand, is a company that builds and rents data centers for high-performance computing (HPC) and AI industries. The company initially catered to blockchain companies but later shifted its focus to the HPC and AI sectors. Applied Digital's subsidiary, Sai Computing, was launched in 2023 to offer AI cloud services. However, the company plans to sell its cloud segment and transform into a real estate investment trust (REIT).
Recently, Applied Digital announced two lease agreements with AI hyperscaler Coreweave on June 2, 2023, which are expected to generate about $7 billion in revenue. In the fiscal 2025 third quarter, Applied Digital's data center hosting business reported a profit of $8.8 million, while the cloud services business reported a loss of $10.3 million.
AI-related stocks have shown strong recent market performance, with major players like Palantir Technologies (PLTR) and NVIDIA (NVDA) leading the charge. Palantir stocks surged by over 480% in the past year as of mid-2025, highlighting significant investor enthusiasm for AI growth stories. NVIDIA is also frequently noted as a top AI stock poised for a potential bull run, reflecting the market’s bullish sentiment on AI infrastructure and chipmakers.
The wider market enthusiasm for AI-related technology lends a positive backdrop for AI stocks, including those in insurance tech and digital infrastructure (categories of LMND and APLD). However, without explicit analyst projections or growth rate data, it is difficult to state precise growth rates or confirm potential for these specific stocks to outperform the market over the next 5–10 years.
For investors interested in these two stocks, monitoring analyst reports and sector trends in AI adoption over time would be key for assessing their long-term market outperformance potential. Notably, Lemonade has set an ambitious goal to grow its IFP to $10 billion in the coming years, and Lemonade's IFP has grown for six consecutive quarters.
In summary, while specific growth rate projections for Applied Digital (APLD) and Lemonade (LMND) are not currently available, the broader AI market is expected to experience significant growth, and both companies are capitalizing on this trend. Investors interested in these stocks should monitor analyst reports and sector trends in AI adoption over time to assess their long-term market outperformance potential.
- Lemonade, an insurance tech company, is investing heavily in AI, with its AI chatbot, Maya, handling a significant portion of their business operations, contributing to a decreased gross loss ratio and increased revenue.
- Applied Digital, a company specializing in data centers for high-performance computing and AI industries, has recently entered the AI cloud services sector, but plans to sell its cloud segment and transform into a real estate investment trust (REIT).
- The stock-market performance of AI-related companies has been strong, with Palantir Technologies (PLTR) and NVIDIA (NVDA) leading the charge, revealing significant investor enthusiasm for AI growth stories.
- For investors interested in Lemonade (LMND) and Applied Digital (APLD), keeping an eye on analyst reports and AI adoption trends over time would be crucial for evaluating their potential for long-term market outperformance, given the anticipated growth in the AI market.
