NVIDIA Corp. (NASDAQ:NVDA) continues to remain an industry leader and the most valuable company in the world. It has become the face of the artificial intelligence (AI) industry and is driving massive growth. Nvidia recently became the world’s first $5 trillion company, within only three months of hitting $4 trillion but AppLovin Corp. (NASDAQ: APP) is still catching attention.
Since January 2025, NVDA stock has jumped 49%, driven by the growing demand for its accelerators and chips. However, AppLovin stock has outperformed Nvidia, delivering 84% returns since January. It has more than tripled in value in less than a year, and sales have doubled while profits have more than doubled.
AppLovin is a rapidly growing AI stock. The company is based in Palo Alto and has become a major advertising giant today. It helps companies promote their mobile apps.
AppLovin has over 200 free-to-play games in the portfolio and provides solutions that help mobile app developers market and grow their apps using AI. AppLovin’s proprietary AI engine, Axon, has become the cornerstone of its success and transformed the way mobile app developers monetize their products. It uses predictive algorithms and matches the advertiser demand with publisher supply in order to generate maximum returns on ad spend. This has allowed the platform to deliver targeted ads, leading to higher revenue and growth. It managed to expand the addressable market and make the most of the e-commerce advertising industry.
The stock is exchanging hands for $631 and is up 267% in a year. It has soared over 900% in five years. AppLovin has a market cap of $213.5 billion. The company has seen its market share rise over the last two years, consequently boosting the annual revenue.
Besides the solid revenue growth, the company has managed to keep the marketing and sales costs down, ensuring steady margin improvements. In the second quarter, the earnings per share tripled to $2.39. Its results surpassed expectations. The revenue came in at $1.3 billion, up 77% year-over-year, and for the third quarter, it is expecting a revenue between $1.32 billion and $1.34 billion. As the worldwide mobile app development market continues to grow, AppLovin is set to benefit.
The company has the ability to scale without incurring higher costs, which has made it an investor favorite. Wall Street is bullish on the stock and has a buy rating. Deutsche Bank has a price target of $705, while Goldman Sachs has a price target of $630 with a Neutral rating. The analyst believes that the company can drive sustained revenue growth from the core mobile gaming segment over the next three years. Oppenheimer stock analyst has a price target of $740 with an outperform rating.
There’s no doubting the strength of AppLovin’s Axon engine, which can lead to a remarkable growth story for the company. Its improving margins and robust revenue growth make it a solid long-term buy. If you want to look beyond Nvidia and are ready to tackle a little volatility, Applovin is a stock that will continue to deliver. AppLovin is set to report results on November 5, when investors can get a better insight into how the company is doing.
