We recently published a list of 10 AI Stocks on Wall Street’s Radar. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other AI stocks on Wall Street’s radar.
Days after the Biden-era rule on AI chips export was rescinded, a bipartisan group of eight U.S. lawmakers has now introduced a bill requiring makers of artificial intelligence chips to include technology that verifies the location of their chips before exporting them.
Introduced in the U.S. House of Representatives, the Chip Security Act will aim to address reports of U.S. export-controlled AI chips being smuggled into China.
The bill comes shortly after US President Donald Trump began his tour of the Middle East this week, announcing several deals that will send AI chips to countries in the Middle East. This has been despite growing opposition from some inside the US government.
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“In order for the United States to maintain our technological advantage, we must employ safeguards to help ensure export controls are not being circumvented, allowing these advanced AI chips to fall into the hands of nefarious actors.”
-Rep. Bill Huizenga, a Michigan Republican who introduced the House bill, said in a statement.
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).
A team of developers working in unison to create the company’s messaging application.
Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On May 14, Austrian advocacy group NOYB said it will seek an injunction against Meta Platforms. The said injunction may lead to substantial claims if the tech giant goes ahead with its plans to use Europeans’ personal data to train its AI models. NOYB, or none of your business, is led by privacy activist Max Schrems. Meta plans to start using personal data from European users of Instagram and Facebook from May 27, citing legitimate interest under EU privacy rules for using users’ data.
The said data will be used to train and develop its generative AI models as well as other AI tools that can be shared with third parties. The company has said that users will receive a link to a form that will allow them to object to their data being used for training purposes. It also said that private messages and public data from accounts of users under the age of 18 will not be used.
“The European Court of Justice has already held that Meta cannot claim a ‘legitimate interest’ in targeting users with advertising. How should it have a ‘legitimate interest’ to suck up all data for AI training? We are currently evaluating our options to file injunctions, but there is also the option for a subsequent class action for non-material damages. If you think about the more than 400 million European Meta users who could all demand damages of just 500 euros or so, you can do the math.”
-Schrems.
NOYB said that it can use an EU rule filed under the EU Collective Redress, enabling consumers to pursue collective lawsuits against companies in the bloc. It set a May 21 deadline for Meta to respond.
“NOYB’s arguments are wrong on the facts and the law. We’ve provided EU users with a clear way to object to their data being used for training AI at Meta, notifying them via email and in-app notifications that they can object at any time.”
-Meta spokesperson.
Overall, META ranks 1st on our list of AI stocks on Wall Street’s radar. 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 have limited downside risk. If you are looking for an AI stock that is more promising than META and that has 100x upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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