5 Fastest Growing AI Stocks To Buy

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

1-year stock price growth as of August 29: 89.61%

Number of Hedge Fund Holders: 225

Meta Platforms, Inc. (NASDAQ:META) started this year with a stock price of nearly $125 and its stock price has been rallying ever since. The company’s stock closed at $297.99 on August 29, registering an almost 139% YTD increase. Among the US Big Five, Meta Platforms, Inc. (NASDAQ:META) has registered the highest YTD gain.

In the second quarter, Meta Platforms, Inc. (NASDAQ:META) stock was owned by 225 hedge funds with a stake worth $30.92 billion, up from 220 hedge funds with a stake worth $25.09 billion in the previous quarter. Tiger Global Management LLC increased its stake in the company by 15% and became Meta Platforms, Inc. (NASDAQ:META)’s largest stakeholder in Q2.

Meta Platforms, Inc. (NASDAQ:META)’s new addition to its AI portfolio was announced on August 24. The company is launching a large language model (LLM) called Code Llama. The LLM is Meta Platforms, Inc. (NASDAQ:META)’s new model for coding and is free for research and commercial use.

Giverny Capital Asset Management made the following comment about Meta Platforms, Inc. (NASDAQ:META) in its second quarter 2023 investor letter:

“I have believed for a while that we’re better served with a lower weight to the tech giants – we own Alphabet (8.1% of our model portfolio at the end of June) and Meta Platforms, Inc. (NASDAQ:META) (5.2%) for a 13.3% exposure, or about half the Index’s weight in the giants. And while Alphabet’s 36% return for the first half and Meta’s 138% return were gratefully received, I’m pleased to report that if we strip out that contribution to our overall return, the other 23 stocks we own, constituting 85% of our portfolio (with cash making up the balance), were up 10.2% on a weighted basis.

GCAM owns two of the seven tech mega caps in Alphabet and Meta, and they enjoyed similar rises. As mentioned, Alphabet A&C shares rose 36% while Meta rose 138%. Together, they added 2.38 percentage points to the overall Index return, meaning these seven tech giants cumulatively generated 12.4 percentage points of return, or roughly three-quarters of the Index’s return.

Alphabet and Meta combined sport a $2.25 trillion market cap and between them should generate roughly $120 billion of pretax profit this year. That’s a multiple of 19 times pretax profit, a substantial discount to Microsoft and Apple, and an even larger discount to Amazon, Nvidia and Tesla.”

You can also look at the 10 Best Value Penny Stocks To Buy and the 15 Highest Paying Countries for Economists.

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