Citigroup’s Top 5 AI Stocks to Buy

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

Number of Investors in Q1 2023: 220

Meta Platforms, Inc. (NASDAQ:META) is also at the forefront of spearheading the AI revolution with its LLaMA language model that enables the development of products integrated across the board. The social networking giant intends to integrate AI across all segments of the company, from advertising to aiding social interaction and even simplifying complex tasks like Metaverse.

With the LLaMA model, it plans to develop AI chatbots that help brands negotiate advertising deals while enhancing how people and businesses interact online. In addition, Meta is making strides in the development of its in-house chip designed for running AI models.

The custom-made hips should be able to run AI models and optimize data centers as parry of a 16,000 GPU supercomputer for AI research.

Insider Monkey took a look at 943 hedge funds for their March quarter of 2023 investments to find out that 220 had bought and invested in Meta Platforms, Inc. (NASDAQ:META)’s shares. Out of these, the company’s biggest shareholder is Philippe Laffont’s Coatue Management .

On July 7, Rosenblatt increased its price target for Meta Platforms, Inc. (NASDAQ:META) to $333 from $263 and maintained a ‘Buy’ rating on the shares. Meta’s new Threads feature received praise from the firm, as they see it as a promising opportunity that restores confidence in Meta’s social media expertise. This positive assessment influenced the adjustment of long-term estimates and multiples, leading to the higher price target.

In its investor letter for the second quarter of 2023, ClearBridge Investments provided the following comment regarding Meta Platforms, Inc. (NASDAQ:META):

“Delivering performance through fundamental, bottom-up stock selection has been a constant over our tenure managing the Strategy. We underperformed in the first half of 2022 from being too early in entering several stocks going through negative earnings revisions and have seen relative results rebound over the last 12 months due to better stock picking, especially among earnings reset names such as Netflix and Meta Platforms, Inc. (NASDAQ:META). Also within shadow tech, we added back to our weighting in Meta as steady advertising trends and continued cost management should lead to improved profitability.”