We recently published a list of 10 Must-Watch AI Stocks on Investors’ Radar. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against other must-watch AI stocks on investors’ radar.
With everyone competing towards supremacy in artificial intelligence, the latest country to intensify its efforts has been Britain. As reported by Reuters, British Prime Minister Keir Starmer said on Monday, January 13th, that he wanted to make the UK an artificial intelligence “superpower”. To reach this goal, the Prime Minister has promised to take a pro-innovation approach to regulation, make public data available to researchers, and create zones for data centers.
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Starmer plans to make artificial intelligence a key part of his strategy to boost the economy. According to the government, the technology could improve productivity by 1.5% a year, translating to an extra 47 billion pounds ($57 billion) annually over a decade.
“Britain will be one of the great AI superpowers. We’re going to make the breakthroughs, we’re going to create the wealth, and we’re going to make AI work for everyone in our country”.
-Starmer said at University College London, noting that the country was already the European leader for AI investment.
Another country that has been actively striving towards reaching supremacy when it comes to AI has been the US. In its latest efforts, the US government is moving to restrict artificial intelligence chip and technology exports further. Dozens of countries will be facing new restrictions on the export of advanced computer chips and other artificial intelligence (AI) technology. According to officials, the new rules are intended to make sure that “the world’s AI runs on American rails” and keep it out of the hands of “malicious actors” who could use it to threaten the United States.
Even though the US government may think it’s heading in the right direction, many top tech companies don’t necessarily agree.
“In the wrong hands, powerful AI systems have the potential to exacerbate significant national security risks, including by enabling the development of weapons of mass destruction, supporting powerful offensive cyber operations, and aiding human rights abuses, such as mass surveillance”.
-US Commerce Department
Chipmaker Nvidia is also against these restrictions and will be the most impacted by the plan. According to the chipmaker, if the restrictions are implemented, they would not “mitigate any threat” but only “weaken America’s global competitiveness” and undermine its innovation.
“By attempting to rig market outcomes and stifle competition—the lifeblood of innovation—the Biden Administration’s new rule threatens to squander America’s hard-won technological advantage”.
-The company said.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A close-up of a mobile device, showing an advertiser reaching out to a consumer via a software-based platform.
AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 51
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On January 17, BTIG raised the firm’s price target on AppLovin (NASDAQ:APP) to $437 from $432 and kept a “Buy” rating on the shares. The rating, issued ahead of the company’s Q4 results, reflects the consistent improvement in advertiser feedback around AppLovin’s recently launched commerce product. The analyst told investors in a research note that the comments suggest advertiser count, campaign volume, and overall spending are all growing at healthy sequential rates. The company has recently launched a program whereby it integrates e-commerce advertising in its mobile gaming platform leveraging its AI-powered AXON engine. The firm is also optimistic about projecting higher-than-expected results for Q4 and anticipates a bigger boost to advertising revenue in 2025.
Overall, APP ranks 5th on our list of must-watch AI stocks on investors’ radar. While we acknowledge the potential of APP as an investment, our conviction lies in the belief that some 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.
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Disclosure: None. This article is originally published at Insider Monkey.