We recently published a list of 10 High-Flying AI Stocks to Watch Today. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against other high-flying AI stocks to watch today.
The most important conference in the tech world is in full swing, yet investors are skeptical about what’s ahead. According to Jensen Huang, his company is well-positioned to navigate a shift in the artificial intelligence industry, particularly where businesses are moving from training AI models to getting detailed answers from them.
Huang also defended his company’s lead in selling costly AI chips to customers, an aspect that was recently questioned after China’s DeepSeek created a competitive chatbot with relatively fewer chips.
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Despite Huang’s reassuring remarks, the chipmaker’s stock fell more than 3%, reflecting how investors haven’t been entirely assured by Huang’s presentation. Calling the conference the “Superbowl of AI”, Huang commented that “almost the entire world got it wrong,” regarding DeepSeek.
“The amount of computation we need as a result of agentic AI, as a result of reasoning, is easily 100 times more than we thought we needed this time last year.”
-Huang, when referring to autonomous AI agents that require little human intervention for routine tasks.
At the same time, new AI models and tools are being launched in the tech world as businesses and countries compete in an attempt to lead the AI arms race. In the latest news, tech giant Tencent has unveiled a suite of new artificial intelligence tools capable of converting text and images into 3D visuals. The move marks the growing Chinese momentum in the field of generative AI.
Similarly, Baidu has released two new AI models which are freely available to individual users ahead of schedule. ERNIE 4.5 is a native multimodal foundation model, while ERNIE X1 is a reasoning model with deep-learning capabilities. The company aims to increase user involvement across its platforms, attempting to combine these models into its larger ecosystem.
As major players continue to release new models and tools, the race to dominate the AI landscape intensifies even further. It’s worth waiting to see who eventually ends up leading the AI arms race and how these technologies end up making an impact on the business world and society.
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).
Photo by Alexander Shatov on Unsplash
Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Investors: 235
Meta Platforms, Inc. (NASDAQ:META) is a global technology company. On March 18, Meta Platforms CEO Mark Zuckerberg took to Threads to announce that the company’s “open” AI model family, Llama, hit 1 billion downloads. That’s an increase from 650 million downloads as of early December 2024, a 53% increase over a roughly three-month period. Llama is a family of open-source, large language models (LLMs) from Meta AI, and is part of Meta’s efforts to develop a comprehensive AI product ecosystem. These models and tools are free for use under a proprietary license.
“Llama, our open source collection of AI models, just hit 1 billion downloads. Open sourcing AI is crucial to ensuring people everywhere have access to the benefits of AI, and every download of Llama moves us closer to that goal.”
-Meta Platforms, Inc.
Overall, META ranks 2nd on our list of high-flying AI stocks to watch today. 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.