Goldman Sachs’ Best Phase 2 AI Stocks: Top 24 High Conviction AI Stocks

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

Year To Date Share Price Gain: 70.36%

Number of Hedge Fund Investors in Q2 2024: 219

Meta Platforms, Inc. (NASDAQ:META) is the final mega cap big tech company on our list with access to self developed foundational AI models. While originally being a social media company that currently has a user base of 3.2 billion people, Meta Platforms, Inc. (NASDAQ:META)’s focus on high technology has meant that it is one of the leaders in the AI industry. The firm’s Llama foundational AI model and broader AI focus have enabled it to become one of the few that are offering AI products to consumers. Meta Platforms, Inc. (NASDAQ:META)’s AI offerings include a voice AI assistant, AI based photo editing, AI translations, and AI image generation. Its Facebook platform earns through running advertisements, and like Amazon, Meta Platforms, Inc. (NASDAQ:META) is also offering a suite of AI products to businesses. These include AI customer support tools and AI advertisement tools. They give the firm one of the broadest AI portfolios in the market, making it unsurprising that the stock is up 70.36% year to date.

Meta Platforms, Inc. (NASDAQ:META)’s management shared details for Meta Studio during the Q2 2024 earnings call:

“And this week we launched AI Studio, which lets anyone create AIs to interact with across our apps.

I think the creators are especially going to find this quite valuable. There are millions of creators across our apps, and these are people who want to engage more with their communities, and their communities want to engage more with them, but there are only so many hours in the day. So now they are going to be able to use AI Studio to create AI agents that can channel them to chat with their community, answer people’s questions, create content and more. So I’m quite excited about this. But this goes beyond creators too. Anyone is going to be able to build their own AIs based on their interests or different topics that they are going to be able to engage with or share with their friends. Business AIs are the other big piece here. We’re still in Alpha testing with more and more businesses.

The feedback we’re getting is positive so far. Over time, I think that just like every business has a website, a social media presence, and an email address, in the future I think that every business is also going to have an AI agent that their customers can interact with. And our goal is to make it easy for every small business, eventually every business, to pull all of their content and catalog into an AI agent that drives sales and saves them money. When this is working at scale, I think that this is going to dramatically accelerate our business messaging revenue. There are a lot of other new opportunities here that I’m excited about too, but I’ll save those for another day when we’re ready to roll them out. The engine that powers all these new experiences is the Llama family of foundation models.”