智通财经网·2025-07-29 10:13Group 1 - UBS highlights the upcoming earnings season for small and mid-cap companies focused on AI application software, recommending increased allocation to Applovin (APP.US) and The Trade Desk (TTD.US) as leaders in the "AI + digital advertising" segment [1][2] - The report emphasizes that small-cap stocks are currently more attractive compared to large-cap stocks, with the Russell 2000 index's expected P/E ratio around 15x, below historical averages [2][3] - UBS expects several small-cap AI application software companies to provide positive earnings guidance, with Applovin and The Trade Desk anticipated to exceed market expectations for Q3 [3][4] Group 2 - The integration of AI in digital advertising has accelerated since the rise of ChatGPT, with major players like Google and Meta incorporating generative AI technologies to enhance ad performance [4][5] - UBS notes that the shift in focus from hardware to software in tech investments is benefiting companies like Applovin and The Trade Desk, as demand for AI application software continues to grow [5][6] - UBS maintains an optimistic outlook on Applovin's performance, raising its Q2 2025 revenue forecast to $867 million, reflecting positive trends from App Store advertising policies and strong growth in its self-operated app business [7][8] Group 3 - The Trade Desk is also viewed positively by UBS, with expectations for steady growth in Q2, driven by its "AI + digital advertising" platform and upcoming events that could catalyze further performance [7][8] - Both companies have successfully integrated generative AI and deep learning into their advertising technologies, leading to significant revenue growth and improved operational efficiency [8]