8 Best Machine Learning Stocks to Buy According to Hedge Funds

3. Meta Platforms Inc. (NASDAQ:META)

Number of Hedge Fund Holders: 235

Meta Platforms Inc. (NASDAQ:META) is a social media and technology giant known for its popular apps like Facebook, Instagram, WhatsApp, and Messenger. It is also heavily investing in the development of augmented and virtual reality technologies as part of its metaverse vision.

As December 2024 ended, Rosenblatt Securities designated this company as a top stock pick for H1 2025, due to its impressive and durable AI-driven growth. This is evident as the company’s revenue surged 22% in the first nine months of the year. This was driven by AI-powered advancements across advertising, user engagement, and campaign effectiveness.

Meta Platforms Inc.’s (NASDAQ:META) stock soared 72% in 2024, driven by AI initiatives. An instance includes the Andromeda ML model and Advantage+ platform. They enhance ad targeting, personalize user experiences, and automate campaign management, which leads to improved advertising revenue. The company’s Llama AI model is also driving growth. This GenAI model is known for its human-like text understanding and generation. The company plans to release multiple versions of Llama 4 in 2025, which will feature improved reasoning and voice interaction.

Hardman Johnston Global Equity recently initiated a new position in Meta Platforms, Inc. (NASDAQ:META) due to its strong AI-driven growth prospects. It stated the following regarding the company in its Q3 2024 investor letter:

“During the quarter, we initiated one new position in Meta Platforms, Inc. (NASDAQ:META) and had no liquidations. Management at Meta has effectively addressed concerns about investment efficiency by shifting resources from Reality Labs towards broader AI initiatives with a clearer path to profitability. We believe management has successfully articulated the benefits of this strategy, highlighting how AI is driving user engagement and advertiser productivity. This, in turn, fuels continued revenue momentum and increases the likelihood of positive earnings surprises in the future. Additionally, the parent company of the social media platform, Facebook, has recently taken positive steps to enhance safety, which suggests to us a shift towards a more proactive and responsive approach to addressing important potential challenges and concerns. Weak oversight over data privacy protection was a key reason why we sold the position in the portfolio back in 2021. Removing this governance overhang allows us to feel comfortable to enter back into the stock at a time when we believe it is poised for strong earnings growth going forward.”