3 of the Best AI Stocks to Buy in October

Core Insights - The article highlights three AI stocks that present significant investment opportunities as businesses transition from experimental phases to real deployments, focusing on measurable results [1][2] Group 1: Palantir Technologies - Palantir Technologies has secured a landmark enterprise agreement with the U.S. Army valued at up to $10 billion over 10 years, consolidating multiple contracts into a unified framework [3] - The company reported Q2 2025 revenue of $1 billion, reflecting a 48% year-over-year increase, with U.S. commercial sales surging 93% to $306 million [3] - Palantir's recent achievement of Cybersecurity Maturity Model Certification Level 2 enhances its competitive position in securing federal contracts [4] Group 2: CrowdStrike - CrowdStrike reported record Q2 fiscal 2026 net new annual recurring revenue (ARR) of $221 million, bringing total ARR to $4.66 billion, a 20% increase year-over-year [5] - The company achieved revenue of $1.17 billion in the quarter, up 21%, demonstrating resilience following a significant incident in July 2024 [6] - CrowdStrike's management projects fiscal 2026 revenue between $4.75 billion and $4.80 billion, positioning itself as a critical "security tax" for businesses expanding AI usage [8] Group 3: AppLovin - AppLovin reported Q2 2025 revenue of $1.26 billion, a 77% year-over-year increase, along with $1.02 billion in adjusted EBITDA and $768 million in free cash flow [9] - The company divested its gaming studios for $400 million to focus on its advertising platform, indicating a strategic shift [10] - Management anticipates Q3 2025 revenue between $1.32 billion and $1.34 billion, maintaining an approximately 81% adjusted EBITDA margin [10] Group 4: Overall Market Context - October marks a pivotal month for AI stocks as Q3 earnings season begins, government contracts are awarded, and key AI platforms launch initiatives [2] - The article emphasizes that Palantir, CrowdStrike, and AppLovin are currently delivering measurable results in decision-making, security, and monetization, making them top investment choices in the AI sector [11]