We recently published a list of 10 AI Stocks Dominating the News This Week. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other AI stocks dominating the news this week.
Elon Musk and OpenAI have jointly proposed to fast-track their trial over OpenAI’s transition to a for-profit company in December. According to OpenAI, the transition toward a for-profit company is crucial to staying ahead in the AI race and raising more capital in the process. Regardless of the shift, Bloomberg News has reported that the company is not expecting its cash flow to turn positive until 2029.
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The report has confirmed that the company expects revenue to triple to $12.7 billion in 2025. However, it is struggling with significant costs from chips, data centers, and talent needed to develop cutting-edge AI systems, which is why cash flow may not turn positive until after a few years. The company expects its revenue to surpass $125 billion by this time. As of 2025, the company said its revenue will triple due to the strength of its paid AI software.
Reuters further noted that the company must transition to a for-profit company by the end of the year to secure the full $40 billion funding led by SoftBank, which is in the final stages of raising. If OpenAI fails to restructure into a for-profit company by the end of the year, the bank may invest only $20 billion instead. The ChatGPT maker was originally given a two-year deadline, with the news marking an accelerated deadline.
Provided it successfully completes its $40 billion funding round, it would be the largest of all time, according to data compiled by research firm PitchBook. The deal would set to value the company at $300 billion, including dollars raised. This is more than double the ChatGPT maker’s previous valuation of $157 billion back in October. A part of this funding is anticipated to be used for OpenAI’s commitment to Stargate, an AI infrastructure project announced by President Donald Trump.
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 28, Evercore ISI reiterated the stock as “Buy,” stating that it sees an attractive entry point for the stock.
“Recent government-driven volatility has created several very intriguing entry/adding points among Tech/Internet stocks. We believe that META @ $603 or 20X 2026 P/E is absolutely one of those.”
The rating follows news from the company, having launched a new “Friends” tab on Facebook. The old-school tab shows users only the latest posts from their friends instead of the usual “recommended content” from the company’s algorithms. The company has been increasingly employing artificial intelligence (AI) to recommend content tailored to individual interests.
Overall, META ranks 3rd on our list of AI stocks dominating the news this week. 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.
