We recently published a list of 10 AI Stocks Making Waves: GTC Highlights & Beyond. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other AI stocks that are making waves with insights on GTC highlights.
A new open-source model from Mistral AI is shaking things up in the tech world. This groundbreaking model outperforms comparable models like Gemma 3 and GPT-4o Mini, delivering inference speeds of 150 tokens per second. Mistral Small 3.1 surpasses the performance of leading small proprietary models across dimensions such as handling text, understanding multimodal inputs, supporting multiple languages, and managing long contexts, all that with low latency and cost efficiency.
Shifting focus to China, Tencent has recently captured attention with its suite of new artificial intelligence tools capable of converting text and images into 3D visuals. The company has released five open-source models based on its Hunyuan3D-2.0 technology, including “turbo” versions that can generate 3D visuals within 30 seconds while maintaining high precision and quality.
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Like many other Chinese firms, Tencent is advancing China’s position in the AI arms race by expanding its capital expenditures. According to Tencent President Martin Lau, capital spending would rise to the “low teens” as a percentage of revenue, and artificial intelligence will be a key focus of strategic investments.
“We will continue to increase our AI investments, increasing investment in our proprietary Hunyuan model while expanding our contributions in multimodal and open-source capabilities.” –Martin Lau.
Meanwhile, once an AI leader in China, Baidu is also striving hard to regain its position in the tech world. The company has released two new free-to-use artificial intelligence models, including its first reasoning-focused model. The move comes ahead of its plans to move toward an open-source strategy.
According to an article by The Financial Times on why China is suddenly flooding the markets with AI models, retaliation appears to be the driving force. When the US tightened its grip on advanced artificial intelligence technologies in January, it blocked off China’s access to advanced AI chips and locked proprietary models behind trade barriers.
Even though it seemed that China would retaliate by doubling down on secrecy, it’s doing quite the opposite, and with good reason. Chinese tech groups are seemingly creating an ecosystem where developers can continuously revamp their models. Provided open-source becomes powerful enough, there would be no reason to pay for closed models if free, equally capable alternatives exist.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
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Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On March 19, JP Morgan analyst Doug Anmuth reiterated his “Overweight” rating and $727 price target on the stock. According to the firm, tech giant Meta and streaming company Spotify are its top picks for investors looking to buy the dip. The firm said that the tech giant has established itself as the “leading open source AI platform,” referring to the expected release of Meta’s Llama 4 model and other products that are likely to drive additional revenue.
“Overall, we’re bullish on META’s AI leadership, which we believe warrants heavy capex & infrastructure spend, & we expect greater AI monetization to support revenue trends in 2025. We expect 2025 revenue growth to be driven by core optimizations, AI investments (Advantage+), Andromeda, video unification, Reels, & Click-to-Message.”
Overall, META ranks 3rd on our list of AI stocks that are making waves with insights on GTC highlights. While we acknowledge the potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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