We recently published a list of 10 AI Stocks Turning Heads on Wall Street. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against other AI stocks turning heads on Wall Street.
Artificial intelligence is advancing fast, but is it ready to replace humans? According to Google DeepMind CEO, it is only a matter of time before it becomes a reality.
Demis Hassabis believes that artificial general intelligence (AGI), a type of artificial intelligence which is as smart as or smarter than humans, will start to emerge in the next five or 10 years.
“I think today’s systems, they’re very passive, but there’s still a lot of things they can’t do. But I think over the next five to 10 years, a lot of those capabilities will start coming to the fore and we’ll start moving towards what we call artificial general intelligence”
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According to Hassabis, AGI is “a system that’s able to exhibit all the complicated capabilities that humans can.”
“We’re not quite there yet. These systems are very impressive at certain things. But there are other things they can’t do yet, and we’ve still got quite a lot of research work to go before that.”
Meanwhile, Dario Amodei, CEO of AI startup Anthropic, told CNBC that he sees a form of AI that’s “better than almost all humans at almost all tasks” emerging in the “next two or three years.” Sam Altman, CEO of OpenAI, believes AGI could be reached sometime in the next four or five years.
Regardless of when it will arrive, an undisputed theory about AGI is that its arrival is imminent. This is because the continuous training of AI models using increasing amounts of computational power and data will inevitably lead to AGI. It is only but wise for policy makers and governments to be proactive regarding its arrival, so that it doesn’t lead to bad outcomes, such as human extinction.
“If governments act now, with determination, there is a chance that we will learn how to make AI systems safe before we learn how to make them so powerful that they become uncontrollable.” Stuart Russell, professor of computer science at the University of California, Berkeley.
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 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: 95
AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On March 17, Needham analyst Bernie McTernan reiterated a “Hold” rating on AppLovin shares. By introducing the initial APP Ecommerce Tracker, the analyst assessed APP’s expansion beyond mobile advertising into ecommerce. After reviewing 2,200 ecommerce websites for the Axon pixel, an AI-powered tracking tool that optimizes ad targeting, the analyst found 297 sites using APP. They reflect common industries such as health & personal care, apparel, and furniture, and notable advertisers such as W, Marine Layer, and Bombas.
APP works across a diverse range of product categories, with over 40% of the websites in the Health & Personal Care sector, while 25% in apparel, footwear, and accessories. The 2,200 websites also include 60 major brands such as Nike, Amazon, and Etsy. The analyst sees strong growth potential for AppLovin, driven by the transition toward in-app advertising (IAA) and the importance of first-party consumer data. Based on these factors, there is significant growth potential in in-app advertising, particularly within casual gaming apps.
Overall, APP ranks 7th on our list of AI stocks turning heads on Wall Street. 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.
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