Top 11 AI and Technology Stocks to Buy According to Hedge Funds

3. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 273

Meta Platforms, Inc. (NASDAQ:META) is one of the Top AI and Technology Stocks to Buy According to Hedge Funds. On December 4, analyst John Blackledge of TD Cowen maintained a “Buy” rating on the company’s stock, retaining the price objective of $810.00. The analyst’s rating is backed by a combination of factors highlighting Meta Platforms, Inc. (NASDAQ:META)’s strategic cost management and potential for earnings growth.

One of the main reasons is Meta Platforms, Inc. (NASDAQ:META)’s plan to significantly reduce its Metaverse-related expenses, which form part of the Reality Labs segment. As per the analyst, such cost reductions are anticipated to be ~30% by 2026, potentially leading to savings of $5 billion – $6 billion. Notably, this move can help partially mitigate the increased spending on AI infrastructure, which happens to be a key area of investment for Meta Platforms, Inc. (NASDAQ:META).

Elsewhere, Morgan Stanley reduced its price objective on the company’s stock to $750.00 from $820.00, while maintaining an “Overweight” rating. While the firm reduced its price objective, it believes that Meta Platforms, Inc. (NASDAQ:META) happens to be one of the few selected companies that could leverage leading data, distribution capabilities, and AI investments to fuel earnings power and maintain technological leadership.