We recently published an article titled Why These 15 AI Stocks Are Skyrocketing So Far In 2025. In this article, we are going to take a look at where Digital Turbine (NASDAQ:APPS) stands against the other AI stocks.
AI stocks were hit hard by DeepSeek’s announcement, but it seems to be that DeepSeek is only causing more optimism in the long run for many AI companies. This is because cost has been a big problem for AI companies, and if they can make progress on this front, it will let AI companies make much more powerful models with the existing hardware they have.
DeepSeek is open source, so most AI companies can learn from its efficiency and integrate it. Moreover, companies and VCs are still willing to put money into AI companies and are doubling down on their bets. This likely means that AI companies will be able to make even more progress in the long run.
The real action has been spreading into many AI companies beyond the familiar names. Plus, we’re seeing the rise of agentic AI. These stocks crushed the market last year, and despite the DeepSeek catalyst this year, they are still doing well.
Methodology
For this article, I screened the top-performing AI stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds invest in? 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 row of mobile phones, highlighting the company’s mobile growth platform.
Digital Turbine (NASDAQ:APPS)
Number of Hedge Fund Holders In Q3 2024: 19
Digital Turbine (NASDAQ:APPS) is a mobile growth platform. It has pre-installed app services and content monetization for device manufacturers and carriers. It also has products for advertisers and publishers.
The stock has gained significantly in 2025 due to its announcement of a program that aims to achieve over $25 million in annual cost savings. This includes a focus on alternative app ecosystems through its acquisition of ONE Store International.
Digital Turbine will be able to diversify its revenue and reduce its reliance on legacy products. It has also partnered up with Xiaomi.
In Q2 FY2025 (ended September 30, 2024), Digital Turbine reported $118.7 million in sales, down 17% year-over-year. It also reported a $25 million GAAP net loss, though this was an improvement over the $161.5 million loss in the same quarter the previous year. Non-GAAP adjusted net income came in at $5 million.
Adjusted EBITDA was $15.3 million, down 45% year-over-year but up 6% sequentially. It had a cash balance of $32 million as of the quarter’s end.
The consensus price target of $2.38 implies 5.4% downside risk.
APPS stock is up 42.6% year-over-year.
Overall APPS ranks 11th on our list of the AI stocks that are skyrocketing so far in 2025. While we acknowledge the potential of APPS 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 APPS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: Why These 15 Stocks Are Skyrocketing in 2025 and 10 Hottest Smid-Cap Stocks So Far In 2025
Disclosure: None. This article is originally published at Insider Monkey.
