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Applovin Corp (NASDAQ: APP) is one of the top AI stocks to buy according to billionaire Philippe Laffont. On June 29, Raymond James initiated coverage of Applovin Corp (NASDAQ: APP) with a Strong Buy and a $640 price target. The price target represents significant upside as the stock is trading at about $515 a share.

The research firm remains confident in the company's long-term prospects, driven by its expansion into e-commerce advertising. It expects the company to deliver long-term growth that could lead to positive estimate revisions. Similarly, Raymond James expects Applovin's core advertising business to deliver 20% to 30% growth.

The robust advertising growth would come as Applovin has emerged as a leading mobile in-app advertising platform. Reinforcement learning and periodic enhancements to the Axon model are also expected to drive growth in the advertising business.

Amid the advertising business's growth, Raymond James expects AppLovin to achieve revenue growth above 40%, EBITDA margins of over 80%, and cash flow conversion of about 100%.

AppLovin Corporation (NASDAQ:APP) is an AI-powered technology platform that helps businesses advertise, monetize, and publish mobile apps. It operates an ecosystem in which developers use its tools to acquire users, while advertisers use its platform to reach over a billion consumers globally.

While we acknowledge the potential of APP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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