The proliferation of artificial intelligence (AI) technology has given many technology companies a boost over the past 18 months, and Opera (NASDAQ: OPRA) is one of them -- share prices of the company, which is known for its mobile and personal computer (PC) browsers, have shot up 146% during this period.

However, there has been a sharp pullback in Opera stock more recently. The stock hit a 52-week high in mid-July last year, then lost more than 52% of its value since then. The company's latest results for the first quarter of 2024 triggered another sell-off as investors seem concerned about Opera's accelerating capital expenditure, a move that will put its bottom line under pressure this year.

For long-term investors, a closer look at Opera's growth, valuation, and lucrative AI opportunity suggests that buying this tech stock could turn out to be a smart move. Let's look at the reasons why.

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Source Fool.com