Three high-quality U.S. AI software stocks that have not yet reached new all-time highs

・Copilot user base continues rapid growth ・In-house chips (Maia 200, Cobalt) deployed at scale, reducing costs ・Microsoft Fabric data platform accelerating adoption Investment risks: ・Massive investment in AI infrastructure may squeeze short-term profits ・Intense competition with Google and Amazon in cloud services ・OpenAI’s sky-high valuation poses partnership risks 3. AppLovin (APP): The invisible champion of AI-powered advertising Latest price: $472.30 | All-time high: $726.50 Drawdown from peak: 35.0% Market cap: $159 billion 52-week range: $218.45–$726.50 Gross margin: 85.0% P/E ratio (TTM): 33.2x Reasons for decline: ・Prior sharp rally led to valuation digestion ・Market concerns over slowing growth in the gaming ad market ・Profit-taking by some investors Core AI advantages: ・Axon 2 machine learning engine: Among the world’s most advanced ad recommendation systems—precisely matching users with ads and significantly boosting advertisers’ ROI ・“Acquisition-to-monetization” closed loop: Through its MAX ad mediation platform and AppDiscovery platform, delivers end-to-end solutions for app developers ・Exceptionally high profitability: EBITDA margin stands at 84.5%, far exceeding Meta’s (41%) and Google’s (36%) ・Expanding market opportunity: Rapidly extending beyond gaming ads into e-commerce, retail, and other verticals Recent earnings highlights: ・Q1 FY2026 revenue surged 59% year-on-year to $1.842 billion ・Net income jumped 109% year-on-year to $1.206 billion ・Adjusted EBITDA margin hit a record high of 84.5% ・Advertising revenue from consumer verticals has already outpaced gaming; retail ad revenue in March rose 25% month-on-month from January Future catalysts: ・Global self-service registration platform launching in June 2026, expected to attract numerous small- and medium-sized advertisers ・Rapid growth in e-commerce and retail advertising business ・International expansion Investment risks: ・High dependence on the gaming industry ・Fierce competition with Meta and Google in digital advertising ・Technology obsolescence risk II. Key metrics comparison across the three stocks Table Metric Palantir (PLTR) Microsoft (MSFT) AppLovin (APP) Drawdown from all-time high 33.8% 28.5% 35.0% Market cap $32.94B $2.93T $15.9B P/E ratio (TTM) 143.1x 24.6x 33.2x P/S ratio (TTM) 17.8x 9.5x 21.6x Gross margin 84.1% 68.3% 85.0% Most recent quarter’s revenue growth 85% 18% 59% Most recent quarter’s net income growth 307% 23% 109%

A-share solid-state battery 'blue-chip': single-quarter profit up 140-fold

Beyond its core separator business, Li Xiaoming—the company’s controlling shareholder—is personally spearheading another strategic initiative toward next-generation batteries: sulfide-based solid-state electrolytes—a path deliberately modeled after the one that secured global leadership in separators. From initial technology entry in 2021 to a series of concrete commercialization steps in 2026, this “second growth pillar” is now taking increasingly clear shape. Currently, Enjie Co., Ltd. has a market capitalization of nearly RMB 50 billion. From Pressure to Profitability The past three years represent a full industry consolidation cycle for Enjie. In 2022, the lithium-ion battery sector was in a phase of rapid expansion, with separator prices peaking at RMB 1.35 per square meter and overall profitability robust. However, as massive new capacity came online across the industry, separator supply growth significantly outpaced demand growth from downstream battery and energy storage markets—driving continuous price erosion. By Q4 2024, the industry average price had fallen to RMB 0.94 per square meter, down more than 30% from the peak, severely compressing margins. Enjie posted a full-year loss of RMB 556 million in 2024. Although performance improved modestly in 2025, annual net profit remained only RMB 143 million, with non-GAAP net profit at just RMB 111 million—far below market expectations for a company commanding over 35% global market share. Its stock price declined steadily from RMB 248.18 at end-2021 to a low of RMB 39.12, erasing over RMB 100 billion in market value. A clear inflection point emerged starting in Q4 2025: as lithium carbonate prices bottomed and rebounded, downstream battery makers initiated a new round of inventory replenishment, and separator demand recovered steadily—propelling Enjie’s quarterly net profit to RMB 229 million, a staggering 3,271% sequential increase. In 2026, rising demand for high-end动力电池 and large-scale energy storage deployments jointly drove sustained order growth and shipment volume increases. In Q3, Enjie reported revenue of RMB 5.555 billion, up 46.95% year-on-year; net profit attributable to shareholders reached RMB 974 million, surging 14,245.28% year-on-year; non-GAAP net profit stood at RMB 976 million, up 9,496.53%; basic EPS was RMB 0.99 per share, up 9,800.00%; diluted EPS was RMB 0.99 per share, up 11,547.06%; ROE (weighted average) was 3.57%, up 3.54 percentage points year-on-year. For the first nine months, Enjie achieved revenue of RMB 14.226 billion, up 49.07% year-on-year; net profit attributable to shareholders totaled RMB 1.794 billion, up 2,178.80%; non-GAAP net profit reached RMB 1.825 billion, up 2,263.79%; operating cash flow net amounted to RMB 2.042 billion, up 132.72%; basic EPS was RMB 1.83 per share; ROE (weighted average) was 6.86%, up 7.21 percentage points. Regarding the reasons for the substantial profit growth, Enjie stated: “In the first three quarters of 2026, the lithium-ion battery separator industry maintained an upward trend in prosperity, with continued optimization of supply-demand dynamics. Downstream demand for power batteries and energy storage remained robust, industry capacity utilization steadily improved, separator pricing stabilized and rebounded from last year’s lows, and overall industry profitability underwent systemic recovery—gradually entering a healthy development trajectory.”

Stepan Q3 2026 Results Show 18% EBITDA Growth, Catalyst Savings Surge

4 days ago

Stepan Company reported strong Q3 2026 results with 18% EBITDA growth driven by volume and margin recovery. Its Project Catalyst initiative exceeded savings targets, contributing to significant net income increases and a 51.6% stock rally.

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