20 Trending AI Stocks on Latest Analyst Ratings and News

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

Number of Hedge Fund Holders: 219

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 has taken a different approach than other tech giants when it comes to AI, choosing to open source the large language model it has developed, unlike Google and Microsoft. This is largely because the firm plans to use the generative AI potential to enhance the advertisement market. Meta just recently overtook Google in digital ad market share and now plans to beat Amazon in the ad domain as well. Under this plan, the firm is also investing heavily in AI infrastructure build.

Roth MKM analyst Rohit Kulkarni has a Buy rating and $550 price target on Meta Platforms, Inc. (NASDAQ:META) after attending the Meta Connect conference keynote by CEO Zuckerberg. In a research note following the event, the analyst noted that the key event was marked by Zuckerberg showing off AR prototype glasses after working on them for 10 years, and with 50% of Reality Labs’ spend having been earmarked to AR, the next couple of years could see slower growth in incremental spend. The note further added that 2024 could also mark a peak segment operating loss margin year for Reality Labs.

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