Opera's AI-Powered Advertising and Search Growth: A High-Conviction Play in the Next-Gen Browser Market

The browser wars are far from over, but Opera is rewriting the rules with a bold, AI-first strategy that positions it as a hidden gem in the next-gen web ecosystem. As the digital landscape shifts toward intent-based advertising and AI-driven user experiences, Opera's innovative product roadmap and expanding user base make it a compelling long-term play for investors seeking exposure to the AI revolution in consumer software.

The AI-Driven Browser Renaissance

Browsers are no longer just tools for accessing the internet—they're evolving into operating systems for AI. Opera is leading this charge with Opera Neon, its AI-powered browser launching in late 2025. Neon integrates AI agents that automate tasks, enhance productivity, and deliver hyper-relevant ads based on user intent. This isn't just incremental innovation; it's a paradigm shift. By embedding AI into the core of its browser, Opera is capturing the attention of 1 billion knowledge workers who rely on browsers as their primary workspace.

The financials back this up. Opera's advertising revenue surged 44% YoY in Q2 2025, driven by e-commerce growth of over 100% and a return to double-digit search revenue growth (up 11% YoY). These metrics highlight the power of intent-based advertising, where AI analyzes user behavior to deliver ads that align with real-time needs. For example, a user researching travel plans might see ads for flights or hotels without ever typing a search query. This precision drives higher engagement and ad spend, creating a virtuous cycle for Opera's monetization.

User Base Expansion: A Global Footprint with AI-Driven Stickiness

Opera's user base has grown to 400 million active users in 2025, up from 350 million in 2024. This 14.3% growth is fueled by its AI assistant Aria, which launched in 2023 and now powers features like real-time translation, content summarization, and personalized recommendations. Aria isn't just a gimmick—it's a retention engine. Users who engage with AI tools are 30% more likely to stay active, according to Opera's internal data.

Geographically, Opera is dominating in emerging markets. In Africa, its Opera Mini and Opera Turbo data-saving features hold a 7.75% mobile market share, while its stablecoin wallet MiniPay has 9 million activated wallets. These tools address pain points in regions with limited bandwidth and financial infrastructure, creating a loyal user base that's less sensitive to competition from Chrome or Safari.

Strategic Differentiation: Gaming, Fintech, and AI Synergies

Opera isn't just competing on ads—it's building a diversified revenue engine. Opera GX, its gaming browser, has 34 million monthly active users and is expanding into South Korea and Japan, where gaming culture is a $30 billion industry. By tailoring features like battery savers and ad blockers to gamers, Opera is capturing a niche with high spending potential.

Meanwhile, MiniPay is disrupting fintech. With 250 million transactions and support for 40 currencies, it's a non-custodial stablecoin wallet that simplifies global payments. This product taps into the $1.5 trillion digital payments market, where Opera's first-mover advantage in AI-integrated wallets could give it a 5% market share by 2026.

Financials and Long-Term Potential

Opera's Q2 2025 results were a masterclass in execution:
- Revenue: $143 million, up 30% YoY, exceeding guidance.
- Adjusted EBITDA: $32 million, with margins expanding to 22%.
- User Growth: 5% YoY increase in monthly active users to 289 million.

The company raised its 2025 revenue guidance to $585–597 million, projecting 22–24% growth. Analysts expect this to accelerate as Neon launches, with AI-driven ad revenue potentially tripling by 2027.

Investment Thesis: Buy for the AI Revolution

Opera's stock is undervalued at a P/S ratio of 3.5x, far below peers like Microsoft (10x) and Google (12x). With AI adoption in browsers projected to grow at 40% CAGR through 2030, Opera's first-mover advantage in intent-based advertising and AI integration gives it a moat.

For investors, the key risks are execution on Neon and regulatory headwinds in fintech. However, Opera's strong cash flow ($33 million operating cash flow in Q2 2025) and diversified product portfolio mitigate these concerns.

Bottom Line: Opera is a high-conviction play for those betting on AI's next frontier. Its ability to monetize AI-driven user engagement, expand in emerging markets, and diversify into gaming and fintech makes it a standout in the next-gen browser race. Buy now and hold for the long term—this is how the AI revolution in consumer software will be built.