2 Hypergrowth Tech Stocks to Buy in 2025

Palantir Technologies and AppLovin are highlighted as hypergrowth stocks leveraging AI to drive significant revenue expansion. Palantir's revenue surged 48% year-over-year to over $1 billion, propelled by its Artificial Intelligence Platform (AIP) which enhances LLM utility for commercial clients, though its valuation remains high at over 100 times 2025 sales estimates. Concurrently, AppLovin, an AI adtech platform, reported a 77% revenue increase to $1.26 billion and nearly doubled adjusted EBITDA, driven by its Axon 2.0 engine optimizing ad placement and expanding into e-commerce and web advertising, with analysts noting strong traction despite past regulatory inquiries.

Analysis

Palantir Technologies (PLTR) demonstrated robust growth, with revenue accelerating for eight consecutive quarters and a 48% year-over-year jump to over $1 billion last quarter, significantly driven by a 93% surge in U.S. commercial revenue. This strong performance is attributed to its Artificial Intelligence Platform (AIP), which enhances the utility of large language models for diverse corporate clients. The company is actively pursuing AI agents as its next growth vector.

Despite exceptional execution and momentum in the AI software-as-a-service (SaaS) space, Palantir's stock trades at a very high valuation, exceeding 100 times 2025 sales estimates. This premium reflects its perceived leadership and strong growth trajectory, which analysts believe is unlikely to slow down soon.

AppLovin (APP) has successfully transitioned into an explosive AI adtech platform, reporting a 77% year-over-year revenue increase to $1.26 billion last quarter, while adjusted EBITDA nearly doubled to $1 billion. Its Axon 2.0 engine, leveraging AI for real-time ad optimization, has been a key driver, enabling margin expansion and cost reduction alongside rapid revenue growth. The company is strategically expanding into larger e-commerce and web advertising markets, with positive early feedback noted by UBS analysts.

Further growth is anticipated from the rollout of a self-serve ad manager and international expansion. While short-sellers and regulatory inquiries concerning data practices have surfaced, these have not materially impacted performance, with Oppenheimer analysts dismissing them as "noise." AppLovin's continued strong results suggest its AI-driven adtech platform holds significant potential for sustained growth.

Key Decisions for Investors

• Investors should carefully evaluate Palantir's premium valuation exceeding 100x 2025 sales estimates against its strong execution and potential for AI agent leadership.
• Consider AppLovin's robust financial performance, including 77% revenue growth and nearly doubled EBITDA, as it expands its AI adtech platform beyond mobile gaming into e-commerce and web advertising.
• Monitor AppLovin's continued traction in new markets and the impact of its self-serve ad manager, while acknowledging that past regulatory inquiries have not presented material risks.