10 AI Stocks Investors Are Watching

Page 9 of 9

1.  Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Investors: 273

Meta Platforms, Inc. (NASDAQ:META) is one of the 10 AI Stocks Investors Are Watching. On December 23, Baird reiterated the stock as “Outperform” and cut its price target to $815 per share from $820. Despite the price target cut, Baird believes that investors should buy the dip.

Analyst Colin Sebastian said that Meta has emerged as a controversial “battleground” stock following the release of its third-quarter earnings report. While near-term risks to sentiment still exist, expectations are now in better balance compared to three months ago.

“Reviewing the current bull vs. bear battleground for Meta, we acknowledge further near-term risks to sentiment, but believe embedded expectations are in better balance vs. three months ago, and encourage investors to be opportunistic buyers.”

The firm further said that mixed sentiment may persist heading in 2026, but narrative may shift to become more constructive through the year.

“While mixed sentiment could persist into early 2026 amid margin uncertainty, we believe the narrative can shift more constructively through the year through a possible margin-clearing event; launch of next Llama model; updates to Meta AI; ramping WhatsApp and Threads monetization, etc.” Sebastian wrote.

Meta Platforms has been expanding its advertising capabilities and also invests heavily in artificial intelligence and the metaverse.

While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than META and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT:12 Hot AI Stocks on Wall Street’s Radar and 12 AI Stocks in the Spotlight for Investors.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9