10 AI Stocks on Wall Street’s Radar

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

Number of Hedge Fund Investors: 235

Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On May 14, Austrian advocacy group NOYB said it will seek an injunction against Meta Platforms. The said injunction may lead to substantial claims if the tech giant goes ahead with its plans to use Europeans’ personal data to train its AI models. NOYB, or none of your business, is led by privacy activist Max Schrems. Meta plans to start using personal data from European users of Instagram and Facebook from May 27, citing legitimate interest under EU privacy rules for using users’ data.

The said data will be used to train and develop its generative AI models as well as other AI tools that can be shared with third parties. The company has said that users will receive a link to a form that will allow them to object to their data being used for training purposes. It also said that private messages and public data from accounts of users under the age of 18 will not be used.

“The European Court of Justice has already held that Meta cannot claim a ‘legitimate interest’ in targeting users with advertising. How should it have a ‘legitimate interest’ to suck up all data for AI training? We are currently evaluating our options to file injunctions, but there is also the option for a subsequent class action for non-material damages. If you think about the more than 400 million European Meta users who could all demand damages of just 500 euros or so, you can do the math.”

-Schrems.

NOYB said that it can use an EU rule filed under the EU Collective Redress, enabling consumers to pursue collective lawsuits against companies in the bloc. It set a May 21 deadline for Meta to respond.

“NOYB’s arguments are wrong on the facts and the law. We’ve provided EU users with a clear way to object to their data being used for training AI at Meta, notifying them via email and in-app notifications that they can object at any time.”

-Meta spokesperson.

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: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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.