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Meta Platforms, Inc. (META): Wall Street Analysts Appreciates Its AI Monetization

We recently compiled a list of the 19 Trending AI Stocks on Latest Analyst Ratings and News. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against the other trending AI stocks.

Exciting new developments in the artificial intelligence space have continued to pour in over the past few days as the stock market recovers from a major tech selloff. Some of the most trending ones relate to electronics giant Apple, Microsoft-backed AI startup OpenAI, and software firm Adobe. Apple has doubled down on AI with the release of macOS Sequoia, which integrates AI features designed to enhance device performance and user experience. These AI enhancements include real-time content generation and AI-driven privacy tools. With iPhone sales slowing, Apple is banking on AI to reinvigorate interest in its devices, setting itself apart in an increasingly competitive tech market​.

Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and AI News You Should Not Have Missed.

On September 13, OpenAI released the highly anticipated Strawberry model, which aims to tackle complex challenges in AI development, including more nuanced decision-making and language processing. This model is expected to advance the capabilities of OpenAI in both consumer-facing tools and enterprise applications. Similarly, Adobe is also making major moves with the Firefly AI video tools, set to debut by the end of 2024. These tools allow users to generate videos from text and images, offering functions like Generative Extend to enhance existing videos. This positions Adobe at the forefront of generative AI for content creation, with a focus on commercial safety by using licensed datasets.

Looking ahead, Wall Street analysts project significant revenue and earnings growth for key players in the AI space, particularly in semiconductor companies that power AI applications. NVIDIA, for example, is forecast to achieve an impressive 27% annual revenue growth, outperforming both the semiconductor industry and the broader US market. The total revenue for the chipmaker in 2025 is expected to reach around $123 billion, with earnings projected to grow by over 24%​. The upcoming Blackwell GPU architecture, which offers a 3.7x performance improvement over a predecessor, is seen as a critical driver of AI growth for NVIDIA in the next few months.

Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and 20 Industrial Stocks Already Riding the AI Wave.

Our Methodology

For this article, we selected AI stocks based on the latest news and analyst ratings. These stocks are also popular among hedge funds. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here)

A team of developers working in unison to create the company’s messaging application.

Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 219

Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. Latest reports indicate that the company has chosen Arista Networks to provide the networking for a massive AI model training cluster that will be powered by over 100,000 GPUs. Meta will use NVIDIA H100 GPUs for the cluster that features $2 billion worth of chips. It will train the Llama 4 large language model. Investment advisory Evercore ISI claims the deal would represent a $250 million revenue opportunity for Arista Networks.

This AI monetization by Meta Platforms, Inc. (NASDAQ:META) has been appreciated by analysts on Wall Street. Tigress Financial recently raised the price target on the stock to $645 from $575 and kept a Strong Buy rating, noting that the increasing cash flow of the firm was enabling ongoing investments in artificial intelligence initiatives that drive increasing user engagement, better content, and a more effective advertising experience.

Overall META ranks 4th on our list of the trending AI stocks. 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 timeframe. 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 the cheapest AI stock.

READ NEXT: Michael Burry Is Selling These Stocks and Jim Cramer is Recommending These Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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