We recently published a list of Wall Street Analysts Can’t Stop Talking About These 10 AI Stocks. In this article, we are going to take a look at where Meta Platforms Inc (NASDAQ:META) stands against other stocks Wall Street analysts can’t stop talking about.
Henry Ajder, Latent Space Advisory founder, said in a latest program on CNBC that lack of fresh data remains a key challenge for the performance of AI systems after a period of “huge” developments and fast learning.
“I think data is the real problem here. We have a finite amount of data available on the internet and a limited number of sources for live, fresh data. I believe this is becoming an increasingly significant challenge, especially as legal issues surrounding how companies obtain and use data are becoming more prominent,” the analyst said.
Ajder believes there won’t be a complete “halt” to the progress in AI systems but in 2025 we are expected to see a slowdown. Answering a question about the AI’s ability to make up data, called synthetic data” to train itself, the analyst said this domain has shown promise but there are risks of synthetic data potentially corrupting the training models.
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For this article we picked 10 AI stocks currently trending based on latest news. With each stock we have mentioned the number of hedge fund investors. 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).
Meta Platforms Inc (NASDAQ:META)
Number of Hedge Fund Investors: 235
Mizuho said in a latest note that Meta Platforms Inc (NASDAQ:META) is one of the companies that are the leaders in monetizing generative artificial intelligence as 2025 approaches.
“While GenAI is still in nascent stages of transforming business processes at scale, following a somewhat slow beginning to 2024 we have seen more notable progress towards enterprise adoption over the past few months,” Mizuho analysts, led by Gregg Moskowitz, said in the report.
“Customers in various sectors are exploring the use of GenAI for a variety tasks, be it automating software development through AI-driven code generation, optimizing marketing strategies with high-quality customized content, or enhancing user experiences through conversational AI applications,” he added.
Mizuho highlighted that companies heavily investing in AI research and development will play a key role in leading the GenAI space. Meta Platforms is part of this list.
Alger Spectra Fund stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q3 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META) operates the world’s largest social network, with over 3 billion monthly active users. The company generates more than 95% of its revenue from advertising, evenly split between North America and international markets. During the quarter, shares contributed to performance following the release of strong fiscal second quarter operating results, with revenues and earnings beating analyst estimates. Management also raised their fiscal 2024 revenue guidance, citing improved advertising monetization. CEO Mark Zuckerberg stated that AI has played a key role in these successes, as the company is leveraging AI to enhance targeting, measurement, ranking, and ad delivery. Higher user engagement, driven by video ranking, content recommendations, and single video views, has also supported growth. Additionally, the optimization of ad placements within videos and automation of ad campaigns are further boosting monetization.”
Overall, META ranks 2nd on our list of stocks Wall Street analysts can’t stop talking about. While we acknowledge the potential of META, our conviction lies in the belief that under the radar 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.
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Disclosure: None. This article is originally published at Insider Monkey.