We recently published a list of 10 AI Stocks in the News Today. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other AI stocks in the news today.
The Trump administration may soon abandon the tiered approach to accessing advanced AI chips and replace it with a global licensing regime with government-to-government agreements. Developing such a structure would likely conform to President Donald Trump’s broader trade strategy of making deals with individual countries. The US would then have an easier time leveraging the American-designed chips in negotiations.
“There are some voices pushing for elimination of the tiers. I think it’s still a work in progress.” — -Wilbur Ross, who served as Commerce secretary during the first Trump administration.
Changes to the Biden-era rule will potentially limit global access to AI chips and the tiers that previously helped determine how many advanced semiconductors a country could obtain.
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Provided that the plans to change these rules follow through, these US chips would have the power to steer trade talks. The rule, known as the Framework for Artificial Intelligence Diffusion, was issued by the U.S. Department of Commerce in January. Companies must conform to its restrictions starting on May 15.
Other possible changes being considered in the Trump administration include a lower threshold for an exception to licensing. Currently, orders under the equivalent of about 1,700 of Nvidia’s H100 chips do not count toward country caps. Rather, the government needs to be notified of the order with no licence necessary.
The administration is considering making the cutoff orders under the equivalent of 500 H100 chips. All of these possible changes by the Trump administration aim to make the rules stronger yet simpler. However, a few experts are of the belief that removing the tiers would make the rule even more complicated.
Many companies and the industry as a whole don’t approve of the rule in the first place, stating that limiting access to chips would provoke countries to buy from China instead. Seven Republican senators even sent a letter to Lutnick, the United States Secretary of Commerce, in mid-April to have the rule withdrawn. The letter stated that the restrictions would incentivize buyers, especially in Tier 2 countries, to turn to China’s “unregulated cheap substitutes.”
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Photo by Alexander Shatov on Unsplash
Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On May 5, Argus Research analyst Joseph Bonner maintained a “Buy” rating on the stock and set a price target of $725.00.
The company recently reported its Q1 results with revenues and earnings topping street estimates. Meta reported sales of $42.3 billion and earnings of $6.43 per share, compared to the consensus estimates of $41.3 billion and $5.22, respectively.
Momentum in its advertising business and artificial intelligence continues to be the largest drivers of current revenues and future expectations for the company.
In particular, CEO Mark Zuckerberg pointed to AI-driven enhancements in ad performance and user engagement, stating that the community keeps growing with more than 3.4 billion people now using at least one of their apps each day.
Overall, META ranks 3rd on our list of AI stocks in the news today. While we acknowledge the 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. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.