Top 10 AI Stocks in the Spotlight

Page 9 of 9

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

Number of Hedge Fund Investors: 273

Meta Platforms, Inc. (NASDAQ:META) is one of the Top 10 AI Stocks in the Spotlight. On July 3, Citizens JMP analyst Andrew Boone reiterated a “Market Outperform” rating on the stock with a $750.00 price target.

According to the firm’s analysis, Instagram continues to dominate among young adults. Among the firm’s interns, it leads in both user penetration and time spent. The firm is of the belief that Instagram will help build Meta’s next generation of users, reinforcing its long-term sustainability.

In other news, Needham & Company upgraded Meta from ‘Sell’ to ‘Hold,’ amid concerns regarding capital allocation and structural cost disadvantages compared to rivals.

It is indeed true that Meta is making significant strides in artificial intelligence, particularly with its recent investment in Scale AI and the recruitments from OpenAI. However, the tech giant has its fair share of challenges.

Mounting pressure from the European Union’s AI legislation and competition for talent from Chinese startup DeepSeek are two such challenges to name. Moreover, its Reality Labs division continues to suffer significant losses.

As such, while the firm is optimistic about Meta’s long-term potential, the costs and regulatory risks suggest a cautionary stance toward the tech giant.

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.

READ NEXT: 10 AI Stocks Getting Wall Street’s Attention and 10 Buzzing AI Stocks on Wall Street Right Now.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9