OpenAI’s move to roll out ads across free and low cost ChatGPT plans has pushed AI driven digital advertising into the spotlight in a fresh way. Big ad budgets may start chasing conversations rather than just clicks, and that could reshape where money flows across the market. This article walks through three stocks that are closely exposed to this shift and how that exposure could matter for your portfolio.

The stocks covered below are just a starting sample, and the full screen on Simply Wall St surfaced 20 more companies with equally compelling AI driven digital advertising narratives that are not covered here. To go deeper, head straight into the AI-Driven Digital Advertising Platforms screener to identify, filter and analyze the highest conviction plays in this theme.

Nexxen International (NEXN)

Nexxen International runs an end to end, video first advertising platform that connects brands, agencies and digital publishers across connected TV, mobile, streaming devices and desktop, which ties it closely to the AI driven digital ad infrastructure theme. The company generates essentially all of its revenue, about US$383 million, from providing marketing services through its demand side, data and supply side platforms, plus tools like Nexxen Discovery and Nexxen Studio. Nexxen International currently has a market cap of about US$561 million.

Nexxen International is worth a closer look if you are interested in how ad budgets might follow users into AI powered and conversational environments. Its end to end stack across DSP, SSP and data, plus partnerships on Smart TV home screens and with VIDAA and others, give it a direct line into formats that are less exposed to falling open web traffic. At the same time, thin and volatile margins, high reliance on external funding and mixed recent earnings keep execution risk front and centre. If Nexxen can turn its CTV focus and nexAI tools into steadier profitability, the potential upside story becomes more compelling.

Nexxen’s end to end CTV and data stack could be masking a sharper risk reward trade off than the headline story suggests. Before you decide how it fits your portfolio, scan the 2 key rewards and 2 important warning signs

Wix.com (WIX)

Wix.com runs a cloud based platform that lets individuals and small businesses build websites, apps and online stores, and then plug in tools for payments, email marketing and paid ad campaigns. This ties it into the AI driven digital advertising theme through self serve marketing tools rather than pure adtech infrastructure. The company generates all of its roughly US$2.1b in revenue from internet software and services, and currently has a market cap of about US$3.4b.

Investors looking at Wix.com are really considering whether AI powered creation and marketing tools can turn a large base of small business customers into a higher value, stickier revenue stream. Products like Symphony by Wix, Base44 and AI website and content tools illustrate how the company is trying to move from just building sites to running more of a customer’s digital marketing and operations. This is happening at a time when platforms like ChatGPT are starting to pull more ad budgets into conversational interfaces. The flip side is that Wix still has a stretched balance sheet, relies heavily on external funding and faces intense competition from big tech ecosystems and low cost rivals, so the path to margin expansion is not risk free.

Wix.com’s push to turn website builders into full service AI marketing hubs could be masking a much bigger story about customer value and risk concentration. The real twist sits inside the analyst forecasts for Wix.com

MNTN (MNTN)

MNTN runs a self serve Performance TV platform that lets advertisers buy Connected TV inventory with a focus on measurable outcomes such as conversions, revenue and site visits, which fits directly with the AI driven, programmatic adtech theme of this screener. The company generates about US$313 million in revenue from internet software and services, all currently reported from the United States, and has a market cap of roughly US$976 million. For investors, that puts MNTN in the mid cap bracket within AI enabled digital advertising.

MNTN offers a relatively focused way to gain exposure to Connected TV as ad budgets move further into automated, AI assisted channels. Products like Performance TV, QuickFrame AI and the Express offering for smaller businesses aim to make TV ads as simple and measurable as search or social. Recent results show the business already operating with high gross margins and positive net income. At the same time, MNTN faces an active patent dispute around its CTV tech and relies on external borrowing, which could matter if the ad cycle softens or legal costs rise. If you are watching how AI powered ad platforms respond to moves like OpenAI’s new ad products in ChatGPT, MNTN is one where both the potential and the open questions are worth closer scrutiny.

MNTN’s high margin, performance focused CTV model could be masking a bigger shift in how TV ad budgets are measured and allocated. Get the full story in the analysis report for MNTN

Seeking Alternatives Beyond AI Ads?

Fresh stock ideas can move quickly as momentum builds, prices start flying and sentiment shifts. Do your homework before the crowd catches on while it still matters. Consider acting while you have time to research thoroughly.

• Spot companies with strong cash generation before they get fully priced. Scan the 46 high quality undervalued stocks and see which fundamentals still look under the radar for now.
• Track structural shifts in electric grids, data centers and transmission tech. Follow the 38 power grid technology and infrastructure stocks while potential stories are still building momentum.
• Target dependable income streams while yields remain elevated. Shortlist companies from the 12 dividend fortresses before pressure on payouts or prices affects future opportunities.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.