We recently compiled a list of the 10 AI News Taking Wall Street by Storm. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against the other AI stocks that are taking Wall Street by storm.
It seems that major tech companies in Silicon Valley are forging relationships with the defense industry these days. In the latest news, prominent artificial intelligence company OpenAI has entered a partnership with Anduril, a defense startup that produces missiles, drones, and software for the United States military.
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The companies said that this partnership will emphasize on the improvement of the United States’ counter-unmanned aircraft systems (CUAS) as well as their ability to deal with potentially lethal aerial threats in real-time. The CUAS will enable defense against drone strikes by detecting and intercepting them while they are airborne.
According to Brian Schimpf, cofounder and CEO of Anduril, OpenAI’s AI models will be used to improve systems used for air defense. The technology will be used to “assess drone threats more quickly and accurately, giving operators the information they need to make better decisions while staying out of harm’s way”, revealed a former OpenAI employee.
“OpenAI builds AI to benefit as many people as possible, and supports US-led efforts to ensure the technology upholds democratic values… Our partnership with Anduril will help ensure OpenAI technology protects US military personnel, and will help the national security community understand and responsibly use this technology to keep our citizens safe and free.”
-Sam Altman, OpenAI’s CEO.
Last month, OpenAI rival Anthropic also entered a partnership with a famous defense contractor to provide “US intelligence and defense agencies” access to its AI models. Regardless of its competitors’ actions, OpenAI shows no signs of slowing down anytime soon. After months of tender offers and a soaring valuation, the company has reached a new record of 300 million weekly active users. The announcement was made by Sam Altman during an appearance at The New York Times’ Dealbook Conference on Wednesday, December 4th. The company is reportedly targeting 1 billion active users by next year.
These strategies aim to strengthen OpenAI’s position against competitors Anthropic and Elon Musk’s xAI, the latter of which Sam Altman considers a “fierce competitor”. Besides that, it is also striving to gain a larger slice of the generative AI market, which may top $1 trillion in revenue by the next decade. Altman also revealed that his company hasn’t asked investors not to invest in its competitors. However, those who decide to wouldn’t have access to OpenAI’s “information rights,” like the company’s roadmap and other materials.
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).
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AppLovin Corporation (NASDAQ:APP)
Number of Hedge Fund Holders: 51
AppLovin Corporation (NASDAQ:APP) is a leading marketing platform powered by artificial intelligence technology. On December 5, Stifel raised the firm’s price target on AppLovin to $435 from $250 and kept a “Buy” rating on the shares. The analyst told investors in a research note that the company’s software platform business is benefiting from AXON 2.0, an updated version of Applovin’s AI-powered ad tech software. AXON 2.0 offers a competitive edge by using data from the company’s market-leading mediation platform to improve the accuracy of its predictive algorithms utilized by AppDiscovery. The firm also expressed increased confidence in AppLovin’s expansion into the e-commerce advertising market. As it does so, the company will also focus on controlling costs which is expected to boost its profit margins and increase cash flow.
Overall APP ranks 5th on our list of the AI stocks that are taking Wall Street by storm. 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.