We recently published a list of the Top 10 AI Stocks on Investors’ Radar. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against other AI stocks that are on investors’ radar.
China’s artificial intelligence sector is evolving into a fiercely contested arena. It hasn’t been long since artificial intelligence startup DeepSeek introduced its low-cost yet efficient AI models, shaking up the tech world. Ever since, several other companies have joined in, intensifying the race. In the latest news, Chinese tech giant Tencent has launched the official version of its T1 reasoning model, marking a step forward in the nation’s accelerating AI push.
READ ALSO: 10 AI Stocks Catching Wall Street’s Attention and GTC Recap and Beyond: 10 AI Stocks on Investor’s Radar
According to The South China Morning Post, the new artificial intelligence (AI) reasoning model, Hunyuan T1, rivals DeepSeek’s R1 in performance and pricing. Tencent’s model leverages large-scale reinforcement learning, a technique which has also been employed by DeepSeek in its R1 reasoning model. According to the company, the upgraded T1 model features faster response times and improved capabilities for handling extended text documents.
T1 can “keep the content logic clear and the text neat and clean”, the post said, while the hallucination rate is “extremely low”.
The T1 has been officially released after the beta run of the T1 preview on Tencent’s chatbot Yuanbao. It scored 87.2 points on the Massive Multitask Language Understanding (MMLU) Pro benchmark, a test that thoroughly assesses large language models’ language comprehension and reasoning across diverse domains. The score beat DeepSeek-R1’s 84 points but trailed the 89.3 points achieved by OpenAI’s o1, according to South China Morning Post’s report.
Tencent has claimed to be the first in the industry to adopt a hybrid architecture combining Google’s Transformer and Mamba. This architecture has been developed by Carnegie Mellon University and Princeton University. According to the company, the hybrid approach “significantly reduces training and inference costs” by cutting memory usage.
The company further praised T1 as “significantly reducing resource consumption while ensuring the ability to capture long text information”. T1 offers a 200 percent increase in decoding speed.
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. The hedge fund data is as of Q4 2024.
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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A graphical representation of the S&P Total Market Index on display above the heads of a team of investors strategizing investments.
AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On March 22, Bank of America analyst Vivek Arya recommended buying the dip on several buy-rated tech stocks, one of which is AppLovin Corporation. The firm said that shares of the company are just too attractive to be ignored.
Several meetings with the management have made its bullish thesis on the company clearer, and it noted how AppLovin has a first-mover advantage and is poised to benefit from an increase in digital spending. Moreover, the analyst noted how investors are hardly shaken despite several short seller reports that targeted the company. The firm has a Buy rating on the stock with a price target of $580.
AppLovin “In our opinion, management’s articulation of the secular bull thesis becomes more effective with each investor meeting – we think investors will soon connect the dots. … .The market’s recent momentum unwind & multiple short seller reports have in our view resulted in an opportunity to acquire a secular grower, early in its inflection, at a steep discount to GOOGL & META, profitable high growth software stocks, & AI beneficiaries…”
Overall, AppLovin Corporation (NASDAQ:APP) ranks 7th on our list of AI stocks that are 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 time frame. 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 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
