We recently published a list of 10 AI News Making Waves on Wall Street. In this article, we are going to take a look at where AppLovin Corporation (NASDAQ:APP) stands against other AI news making waves on Wall Street.

OpenAI has previously been dependent on Nvidia for its chip supply, but it looks like it may not be for long. As reported by Reuters, the artificial intelligence startup is all set to develop its first generation of in-house artificial intelligence silicon.

According to sources, the startup is finalizing the design for its first in-house chip in the next few months. It then plans to send it for fabrication at Taiwan Semiconductor Manufacturing Co in a “taping out” process.

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This training-focused chip will be used as a strategic tool to strengthen OpenAI’s negotiating leverage with other chip suppliers. If all goes smoothly, the company will be able to mass-produce its first in-house AI chip and potentially test an alternative later this year.

Meanwhile, big tech companies have struggled to produce satisfactory chips over the years. Nevertheless, DeepSeek has raised questions about whether fewer chips will be needed in developing powerful models in the future.

Google DeepMind boss Demis Hassabis has recently dismissed DeepSeek’s claims that its popular chatbot and AI model is using far less money than US rivals.

DeepSeek “seems to have only reported the cost of the final training round, which is a fraction of the total cost.”

– Hassabis told Bloomberg Television

He also stated that DeepSeek’s emergence doesn’t upend the economics of AI development.

“We don’t see any new silver bullet technologies. DeepSeek is not an outlier on the efficiency curve.”

-Hassabis said at the Artificial Intelligence Action Summit.

The Chinese startup has reportedly spent around $5.6 million on computing costs to train its models. OpenAI and Microsoft are currently investigating these claims, searching if anyone tied to DeepSeek has obtained data from OpenAI through a process known as distillation.

According to Hassabis, DeepSeek seems “to have relied on some Western models to distill from”.

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).

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: 51

AppLovin Corporation (NASDAQ:APP) provides a leading marketing platform powered by AI technology. On February 10, Wedbush analyst Michael Pachter maintained their bullish stance on the stock and gave a “Buy” rating. The firm is optimistic about the stock considering its shift in mobile ad spending. In particular, Apple’s IDFA changes have been particularly helpful for Applovin, redirecting ad dollars towards mobile games. IDFA, or Identifier for Advertisers, helps advertisers target and track users in apps on iOS devices. These changes disrupted traditional mobile advertising, with Applovin figuring out a way by integrating data-driven strategies with robust AI and a focus on contextual advertising. In particular, the company’s AppLovin’s AI-powered ad technology, AXON 2.0, considerably boosted ad performance and doubled the number of installs compared to competitors without increasing overall spending. This allowed it to capture a significant share of the mobile games ad market. The firm further noted that Applovin’s financial outlook remains robust and that its software platform is seeing strong contribution margins. With potential expansion into e-commerce ads, there is room for additional revenue growth.

Overall, APP ranks 8th on our list of  AI news making waves 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 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.