10 Hot AI Stocks to Buy Now

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1. AppLovin Corporation (NASDAQ:APP)

Magnitude of revision in street 2026 EPS estimates: +130%

Number of Hedge Fund Holders: 51

AppLovin Corporation (NASDAQ:APP) is a leading mobile technology and advertising platform that leverages AI to optimize user acquisition, ad placement, and revenue generation across its expansive ecosystem of apps and marketing solutions.

The disruptive entrance of low-cost, high-performance AI models could compel AppLovin Corporation (NASDAQ:APP) to upgrade its AI algorithms for targeting and personalization to maintain a competitive edge, while simultaneously reducing operational costs associated with ad optimization and campaign analytics. Furthermore, as rivals adopt these more affordable AI advancements, the company might face intensified competition in the ad tech space, but if it successfully integrates these cutting-edge solutions, it could enhance its platform’s effectiveness, leading to improved user engagement and higher returns for its advertisers. The strong momentum in earnings growth expectations highlights the management’s success in positioning the company to navigate the current rapidly changing market – both gaming and advertising businesses are booming, with EBITDA growing 78% in 4Q alone and the gaming platform surpassing 1 billion users daily, something that is comparable to the largest social platforms in the world.

Looking forward, AppLovin Corporation (NASDAQ:APP) is focusing on developing automated tools to allow countless new businesses to tap into their platform, as current systems lack the full self-service capabilities needed to handle growth at scale. The company demonstrated that its platform success isn’t limited to direct-to-consumer brands, with early pilots showing positive outcomes for a range of advertisers across various verticals.

Overall AppLovin Corporation (NASDAQ:APP) ranks first on our list of the hot AI stocks to buy now. While we acknowledge the potential of APP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than APP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.

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