2 Must-Buy AI-Focused Tech Giants With Solid Earnings Estimate Revision

Amphenol (APH) and AppLovin (APP) are highlighted as key beneficiaries of the AI-driven technology sector rally, both exhibiting strong positive earnings estimate revisions. Amphenol, a dominant player in AI/data center interconnects with an estimated 33% market share, is experiencing robust demand across IT, 5G, and defense, projecting substantial revenue and EPS growth into 2025 and 2026. Concurrently, AppLovin, a mobile ad-tech leader, has seen its Axon 2.0 AI engine quadruple ad spend on its platform, driving an estimated $10 billion annual run rate from gaming clients and significant EPS growth forecasts for the coming years, underscoring continued market confidence in AI-centric growth opportunities.

Analysis

Amphenol (APH) and AppLovin (APP) are being highlighted as prime beneficiaries of the ongoing artificial intelligence trend, underscored by significant positive revisions to their earnings estimates. Amphenol is solidifying its position as a critical hardware supplier for AI infrastructure, commanding an estimated 33% market share in AI/data center interconnects. The company's growth is propelled by diversified demand across hyperscale data centers, 5G, and defense, with consensus estimates for 2025 projecting a 41.5% year-over-year revenue increase and a 59.8% rise in EPS. Concurrently, AppLovin demonstrates strong execution in the AI software and ad-tech space. Its Axon 2.0 AI engine has quadrupled advertising spend on its platform, establishing an estimated $10 billion annual ad spend run rate and successfully navigating the post-IDFA environment. This performance underpins exceptional growth forecasts, with 2025 EPS expected to surge by 97.6% and the 2026 earnings estimate having been revised upward by a substantial 11.3% in the last 30 days, signaling strong analyst confidence in its future monetization capabilities.

Key Decisions for Investors

• Investors seeking exposure to the AI theme can consider these two distinct plays: Amphenol for the physical infrastructure build-out with diversified end-markets, and AppLovin for the AI-driven software and advertising application layer.
• Given Amphenol's projected 41.5% revenue growth and 59.8% EPS growth for 2025, investors should view it as a core holding for exposure to the foundational hardware of AI, defense, and 5G expansion.
• For those targeting hyper-growth, AppLovin's expected 97.6% EPS increase in 2025 and a significant 11.3% upward revision for 2026 earnings make it a compelling, albeit more focused, bet on AI-powered ad-tech monetization.
• Monitor future earnings reports to confirm that the momentum described, particularly the ad spend growth at AppLovin and interconnect demand for Amphenol, continues to align with the current bullish analyst consensus.