17 Trending AI Stocks According to Latest News And Analyst Ratings

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

Number of Hedge Fund Holders: 246

Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. The firm recently posted earnings that beat analyst expectations on top and bottom lines and reiterated that capex on AI would continue to increase in the coming months. The firm projects 2024 capital expenditures coming in at $37 billion to $40 billion, up from previous estimates of $35 billion to $40 billion. Meta CEO Mark Zuckerberg told investors recently that Meta AI was on track to be the most used AI assistant in the world by the end of the year.

Analysts at investment advisory Barclays believe that investors are mis-modeling the hidden costs of AI spend to around 5% of the EPS. However, the advisory maintained an Overweight rating on Meta Platforms, Inc. (NASDAQ:META) stock with a price target of $520, underlining that even though the present outlook on AI was bullish, the risks associated with higher capex on AI would not be fully realized before the latter part of 2025 and early 2026.