10 AI Stocks to Watch Amid the DeepSeek Buzz

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

Number of Hedge Fund Investors: 235

Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On January 28, Citi reiterated its Buy rating on Meta Platforms Inc. with a price target of $753.00. Even though DeepSeek’s entry has shaken Wall Street, Citi analysts argued that it could mean good things for Meta. The analysts, led by Ronald Josey, assert that the DeepSeek model should lead to faster AI product development and yield a quicker return on investment. It said that since the r1 model from DeepSeek is open-source, it can be a lesson for the tech giants to learn from it and make their own tools more efficient.

“Given R1 is open source, our key takeaway here is that Meta (and others) can learn from R1 which should make its AI tools more efficient,” analysts wrote. “And while Meta has committed to $60-65BN of CapEx in ’25E, model efficiencies could suggest we are nearing peak CapEx spend as product cadence ramps.”

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: 20 Best AI Stock To Buy Now and Complete List of All AI Companies Under $2 Billion Market Cap.

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