5 AI Stocks Wall Street Is Watching Now: Nvidia, Micron, and More

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Investors: 256

Analysts have recently become more bullish on Meta Platform’s AI opportunity, entitling the stock to third place on our list of 12 AI Stocks Wall Street Is Watching Now.

On May 5, Mizuho analyst Lloyd Walmsley lowered the price target on the stock to $835.00 (from $850.00) while maintaining an Outperform rating.

While the firm is positive on Meta, it is somewhat cautious and closely watching it on its execution and cost discipline. It expects Meta to roll out more AI products, which will likely explain what the company plans to do with its new and improved LLM model and how it can eventually monetize.

Mizuho particularly acknowledged Meta’s vision for developing agentic AI “for mom.” Like other AI labs, this means that Meta isn’t just serving businesses but focusing on everyday users across its platforms. It also highlighted the encouragement from hearing the company flag “ large increases in Meta AI use” since the Muse Spark launch.

We believe it is critical for Meta to (1) demonstrate more of a product roadmap and adoption progress, and/or (2) figure out how to curtail cost/capex growth ahead of the 2Q print and guide for 3Q, given significantly harder comps. If growth peaks in 2Q, unless we get one of the above definitively, the multiple could compress. Maintain Outperform, target to $835 (from $850).