The S&P 500 will update its constituents on Sept. 22, adding three new companies, including AppLovin, a booming AI stock with excellent algorithms and expanding services. The committee selects new entrants quarterly, with AppLovin replacing MarketAxess, Caesars Entertainment, and Enphase Energy this quarter.

AppLovin’s Axon 2 advertising optimizer, built on machine learning AI models, has seen impressive results, with revenue climbing from just over $1 billion in 2022 to $4.25 billion in the last four quarters. The company is expanding beyond in-game ads to connected-TV advertising and e-commerce advertising.

AppLovin’s self-serve platform and AI capabilities, like generative AI, offer strong growth potential. However, concerns about scaling Axon 2 and the stock’s high valuation remain. The company aims to attract more marketers with its advertising expertise and automate processes to drive growth.

Stock Advisor analysts recommend 10 stocks for investors to buy now, excluding AppLovin. The service’s total average return is 1,067%, outperforming the S&P 500’s 189%. Past recommendations like Netflix and Nvidia have generated significant returns, highlighting the potential for future growth in selected stocks. Don’t miss the latest top 10 stock list available when you join Stock Advisor. Stock Advisor returns as of September 15, 2025. Adam Levy has no position in any mentioned stocks, but Motley Fool has positions in and recommends EMCOR Group, Enphase Energy, and MarketAxess. Disclosure policy applies.

Check out the newest Artificial Intelligence (AI) stock in the S&P 500, up 5,660% since 2023. Could continue to climb higher. Originally published by The Motley Fool.

Read more at finance.yahoo.com: Meet the Newest Artificial Intelligence (AI) Stock in the S&P 500. It’s Up 5,660% Since 2023, and It Could Still Climb Higher From Here.