Is Meta Platforms (META) The Most Undervalued AI Stock To Buy Now?

We just covered Billionaire Ken Fisher’s Latest Portfolio: 10 Best AI Stocks to Buy. Meta Platforms, Inc. (NASDAQ:META) ranks #9 (see the 5 Best AI Stocks to Buy).

Billionaire Ken Fisher’s Stake: $4.36 billion

Wall Street has been spooked by Meta Platforms’ (NASDAQ:META) massive AI spending, but many overlook the results it is generating. The company’s AI-driven Advantage+ suite is now handling over $60 billion in annualized ad spend.

For the first quarter of 2026, Meta expects $53.5 billion to $56.5 billion in revenue,  ahead of analyst estimates of $51.41 billion. Meta Platforms (NASDAQ:META) is also planning to reduce its reliance on Nvidia chips by accelerating the deployment of its own custom silicon, the Meta Training and Inference Accelerator (MTIA), to lower long-term compute costs. Meta Platforms (NASDAQ:META) is down 2 so far this year, and its forward P/E is now 21x, down from its historical average of 25.5x and lower than major Magnificent Seven peers and the broader industry average for high-growth tech.

Ads remain one of the biggest strengths of Meta. Advertising revenue reached $196 billion in 2025, up 22% year over year. The company is already using AI to improve ad targeting. Its generative advertising model, built on an LLM-inspired approach, helped drive a 3.5% increase in Facebook ad clicks and a more than 1% gain in Instagram conversions in the fourth quarter.

Harding Loevner Global Equity Strategy in its investor letter mentioned exactly why the market concerns increased around Meta. Read the full text of the letter here.

Jim Cramer Discusses Meta (META) & Mid Term Elections

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While we acknowledge the risk and potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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