We recently compiled a list of the 8 Fastest Growing AI Stocks To Buy Right Now. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against the other high-growth AI stocks.
The rapid growth of artificial intelligence (AI) continues to reshape industries around the world, and experts are closely monitoring its trajectory. In December 2024, Roosevelt Bowman, Senior Investment Strategist at Bernstein Private Wealth Management joined ‘Wealth’ hosted by Yahoo Finance to share his insights on the AI landscape heading into 2025. Bowman predicts that AI will move beyond its current focus on semiconductors and cloud computing. He expects that it will expand into power infrastructure and cooling technologies, which play a crucial role in running large-scale AI models effectively.
Bowman also highlighted that AI models have tremendous power requirements of AI data centers. He emphasized the need for reliable energy sources to meet these demands and noted that this could lead to new market opportunities in sectors that support AI’s operational needs.
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On February 28, 2025, Alex Zukin, managing director and head of software research at Wolfe Research joined Market Domination Overtime on Yahoo Finance to discuss the evolving role of AI in the software industry. Zukin noted that 2025 could be a pivotal year for software companies to unlock the real value of AI.
He pointed out that AI technology is moving extraordinarily quickly. Zukin expects this year to mark a turning point as companies start to implement AI solutions into production and unlock benefits. However, he cautioned the companies not to overpromise on artificial intelligence.
Zukin also told Yahoo Finance about the seasonality of the enterprise software market. The first quarter is typically difficult, but he expects growth to accelerate in the second half of 2025.
Beyond software, there is significant potential for AI to drive innovation across various industries.
Methodology
To compile our list of the 8 fastest-growing AI stocks to buy right now, we looked for the largest and most popular AI companies. We reviewed Insider Monkey’s database of prominent AI stocks, financial media reports, ETFs, and various online resources to compile a list of more than 30 AI stocks. To look for the fastest-growing AI stocks, we narrowed down our list to companies with a compound annual growth rate (CAGR) in revenue exceeding 10% over the past 3 years and a year-over-year revenue growth rate of more than 25%. Next, we focused on the top 8 fastest-growing AI stocks most favored by institutional investors. Data for the hedge fund sentiment surrounding each stock was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds. Finally, the 8 fastest-growing AI stocks to buy right now were ranked in ascending order based on the number of hedge funds holding stakes in them, as of Q4 2024.
Why do we care about what hedge funds do? 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 close-up view of an AI-platform software code running on a monitor.
AppLovin Corporation (NASDAQ:APP)
Year-Over-Year Revenue Growth Rate: 43.44%
3-Year Revenue CAGR: 19.02%
Number of Hedge Fund Holders: 95
AppLovin Corporation (NASDAQ:APP) is an American mobile technology company that provides end-to-end software and AI solutions for businesses to reach, monetize, and grow their global audiences. AppLovin Corporation (NASDAQ:APP) is one of the best high-growth stocks to invest in. The company is working to improve its advertising AI models, which are still in the early stages. AppLovin Corporation (NASDAQ:APP) has a promising roadmap ahead filled with opportunities to refine its models. In 2025, the company plans to launch a self-service dashboard powered by AI agents to help its customers manage their campaigns more effectively.
ClearBridge Investments, an investment management company, has a positive outlook on AppLovin Corporation (NASDAQ:APP) and pointed out in its “ClearBridge Mid Cap Strategy” Q4 2024 investor letter that the company has opportunities to continue to expand and grow its share in the mobile app marketing sector as mobile gaming ad spending recovers. The investment management firm also noted that AppLovin Corporation (NASDAQ:APP) has the potential to expand in its addressable e-commerce advertising market, where initial efforts have shown promise. ClearBridge Investments believes that with strong incremental margins and management keeping expenses controlled, AppLovin Corporation (NASDAQ:APP) is positioned to generate significant growth in free cash flow as revenue continues to rise.
Overall, APP ranks 4th on our list of the fastest-growing AI stocks to buy right now. 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.
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Disclosure: None. This article is originally published at Insider Monkey.