5 Most Promising AI Stocks According to Hedge Funds

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

Number of Hedge Fund Holders: 234

Meta Platforms, Inc. (NASDAQ:META) is a tech conglomerate and one of the leading companies in today’s AI race with its AI-integrated features in social networking apps, Meta AI, and more.

On December 8, BofA maintained a Buy rating and $384 price target on Meta Platforms, Inc. (NASDAQ:META)’s stock. The firm highlighted the company’s recurring revenue models owing to its AI-focused innovations.

According to Insider Monkey’s database, the hedge fund sentiment was quite positive toward Meta Platforms, Inc. (NASDAQ:META) in Q3. In the quarter, 234 funds were bullish on the stock, up from 225 funds in the previous quarter. Rajiv Jain’s GQG Partners was the most significant investor in the company and increased its stake by 33% to 11.1 million shares worth $3.34 billion.

White Brook Capital Partners commented on Meta Platforms, Inc. (NASDAQ:META) in its third quarter 2023 investor letter. Here is what it said:

“The magnificent seven, that underpin the S&P 500 performance, which includes Meta Platforms, Inc. (NASDAQ:META), now comprise almost 30% of the market capitalization of the S&P500. At least three of the seven stocks have heightened downside risk and suffer from already high penetration, weakening end markets, competitive risk, and lofty valuation. They have been remarkably resilient to increased interest rates and the potential for slowing growth. Small and midcap stocks, on the other hand, have been systemically penalized by fears of recession and continue to price that eventuality even as significantly better outcomes have become more probable. Today, it’s relatively easy to find attractive investments in this segment.”