From Nasdaq: 2025-05-30 11:33:00

AppLovin Corporation and Arm Holdings plc are tech companies leveraging AI for growth. AppLovin focuses on AI-driven advertising, while Arm Holdings excels in chip architecture for AI hardware. Both companies are at the forefront of the AI revolution, capitalizing on the increasing demand for AI solutions across industries.

AppLovin is transforming into a top AI-powered advertising platform, selling its gaming unit to focus on AI technology like AXON 2.0. With automation and advanced algorithms, AppLovin drives efficiency and revenue growth. Recent earnings show a 40% revenue increase, driven by AI optimization in digital advertising.

Arm Holdings dominates the semiconductor industry with energy-efficient chip designs for smart devices and cloud infrastructure. Its licensing model provides steady revenues. However, tariff-related risks could impact royalty revenues in the U.S. market, affecting its growth trajectory and technology development.

Zacks estimates predict a 24% sales increase for AppLovin and a 17% growth for Arm Holdings. AppLovin’s higher EPS surge reflects better operational efficiency and demand in digital advertising. Arm Holdings focuses on scaling its licensing model and AI innovation. AppLovin’s balanced growth and profitability make it a more attractive investment option.

AppLovin shines as a smarter AI bet with its focused approach and grounded valuation. Arm Holdings faces external risks and premium pricing, potentially limiting its upside. Investors seeking AI-driven growth and strategic clarity may find AppLovin a more compelling choice. APP is currently rated as a Zacks Rank #1 (Strong Buy), while ARM is rated as a Zacks Rank #4 (Sell).



Read more at Nasdaq: ARM vs. APP: Which AI-Exposed Tech Stock is a Better Buy Right Now?