Shares of Phunware Inc. rose 17.6% on Wednesday and continued to jump over 10% in overnight trading after the mobile-advertising software company gave a business update and announced the development of a new generative-AI platform.

In a letter to shareholders, Phunware $(PHUN)$ Chief Executive Mike Snavely said that the new platform will simplify mobile-app design and content creation, and "drastically reduce" the need for expensive and time-consuming design and development investments.

The company's new AI-powered software-as-a-service platform will launch in mid-2025, according to Snavely.

Generative AI has become a major trend in recent years. The technology can be trained to harness vast quantities of data and generate carefully tailored content.

Other companies tapping generative AI include Walmart Inc. $(WMT)$, Salesforce Inc. $(CRM)$ and Reddit Inc. (RDDT), which recently acquired generative AI company Memorable AI.

Like Trump Media & Technology Group Corp.'s $(DJT)$ stock, shares of Phunware have soared recently. Phunware, which developed and launched a mobile app for the Trump-Pence 2020 re-election campaign, is seen as a Donald Trump-related stock.

Phunware's stock has gained in 14 of the past 17 trading sessions. Like Trump Media, trading in Phunware's stock was halted for volatility Tuesday.

In his letter to shareholders, Snavely acknowledged the volatility around Phunware's stock, which has seen the company's market cap swing from $12 million late last year to a high of about $120 million in the first quarter of 2024. Phunware's market cap is currently around $61 million.

"It's certain that some of our stockholders' positions have benefited from this price volatility and some have not," wrote Snavely. "We acknowledge this by saying that we have always acted, and will continue to act, in what we see as the best long-term interests of our stockholders."

"Often, volatility drives opportunity, and over the months we have used the trading volume and price volatility to raise capital to stabilize the balance sheet and to provide the capital required to think bigger," the CEO added.

Last year Phunware launched AI-enabled mobile engagement on its platform. The company is planning to invest in the application of its AI-powered platform for advocacy and voter engagement, Snavely said in his letter to shareholders Tuesday.

"You will recall that we developed and implemented the Donald J. Trump 2020 Presidential Campaign app, a highly regarded and well-received voter/advocacy engagement app," he wrote. "We think this was just the tip of the iceberg. Every election cycle, candidates set new records in spending and we believe that our AI-powered platform can help make that spend more impactful."