5 Tech Stocks Benefiting From The AI Boom

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

Number of Hedge Fund Holders: 220

Meta Platforms, Inc. (NASDAQ:META) was found in the 13F holdings of 220 hedge funds at the end of the first quarter, with a total stake value of $25.1 billion.

Meta Platforms, Inc. (NASDAQ:META) is expected to benefit from the AI boom since it has been spending immensely on generative AI software. John Blackledge at TD Cowen believes AI can, in particular, boost the company’s ad sales across all its social networks.

As of June 5, Oppenheimer holds an Outperform rating on Meta Platforms, Inc. (NASDAQ:META).

Here’s what Baron Funds said about Meta Platforms, Inc. (NASDAQ:META) in its first-quarter 2023 investor letter:

“Shares of Meta Platforms, Inc., the world’s largest social network, were up 76.0% this quarter due to decisive cost discipline actions, improving adoption of new advertising products, the company’s work in generative artificial intelligence (AI), and the broader rally in technology stocks. Meta is the mega-cap technology company most focused on profitability through cost cutting, including layoffs of more than 20% of its staff and reductions in its data center and office footprint. On the top line, Meta continues growing its user base with daily average users up 5% year-over-year in the last quarter. Engagement remains healthy with impressions up 23% year-over-year, and newer advertising formats (like Instagram Reels) are reportedly picking up steam with 40% of advertisers now using Reels. Longer term, we believe Meta will utilize its leadership in mobile advertising, massive user base, innovative culture, and technological scale to sustain durable growth for years to come, with further monetization opportunities ahead in newer areas such as WhatsApp.”