We recently compiled a list of the 15 AI News Investors Should Not Miss. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against the other AI stocks investors should not miss.
On October 31, CNBC’s Steve Kovach joined ‘Money Movers’ to discuss big tech’s AI spending. Kovach observes that, apart from ChatGPT, no other AI product has achieved a breakthrough, despite ongoing efforts from many companies. Currently, most of the money is going to chip makers and cloud businesses, and there is no evidence of meaningful sales or engagement around AI products that people may want to use every day. Kovach’s observation implies that tech giants continue to invest heavily in foundational AI advancements and that high-engagement consumer products may still have time to launch. Additionally, many of these big tech companies have reported that they will continue to step up their already high spending on AI infrastructure.
READ ALSO: 15 AI News You Should Not Miss and Top 10 Trending AI Stocks in Q4.
For many like Kovach, OpenAI represents the leading and most mainstream AI breakthrough, with each of its moves highly anticipated. After all, the company is widely credited for bringing artificial intelligence tools into widespread use. In its latest breakthrough, OpenAI has launched “ChatGPT Search”, the company’s new search engine, positioning the high-powered AI startup to compete with search engines like Bing, Perplexity, and Google. This search feature within ChatGPT provides up-to-the-minute sports scores, stock quotes, weather, and more, driven by real-time web searches and partnerships with news and data providers.
“I find it to be a way faster/easier way to get the information I’m looking for. I think we’ll see this especially for queries that require more complex research. I also look forward to a future where a search query can dynamically render a custom web page in response!”
– Sam Altman said in a Reddit AMA on Thursday.
In a notable advancement towards more accessible AI products and services, SpotAI, a leader in AI camera systems, announced the launch of its Video AI Agents. The announcement strives to bring agentic AI capabilities from the digital to the physical world. These agents assist organizations in identifying and resolving incidents, offering measurable ROI in sectors such as manufacturing, education, retail, and automotive services; all without the need for human intervention.
In a similar development within the AI landscape, OSARO, a global leader in machine-learning-enabled robotics for high-volume fulfillment centers, has launched OSARO AutoModel. The OSARO AutoModel allows robots to automatically learn and adapt to new items, processes, and workflows with zero downtime; unlike previous robots that need updating for new SKUs.
Continuing the trend of leveraging artificial intelligence in our increasingly AI-driven world, Bolster, a leader in multi-channel phishing protection, announced on Thursday its newest feature called Bolster AI Security for Email. The Bolster AI Security for Email automates the analysis and mitigation of cyber threats reported through customer abuse mailboxes. The new feature combines crowdsourced customer reports and AI-driven automation to protect brands from fraud schemes in real-time.
Our Methodology
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.
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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of developers working in unison to create the company’s messaging application.
Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) is an American multinational technology conglomerate offering social networking, advertising, and business insight solutions. The company is a leader in AI amongst social media stocks, with strong AI and metaverse ambitions as it tries to build diverse revenue streams.
Meta Platforms, Inc. (NASDAQ:META) announced its fiscal third-quarter earnings after the closing bell on October 30. The company beat expectations on the top and bottom lines. It reported a revenue of $40.59 billion, while analysts’ estimates were $40.29 billion. Moreover, net income was $15.69 billion, an increase of 35%. The company’s strong quarter was driven by advancement in AI across its products and strong momentum with Meta AI, Llama adoption, and AI-powered glasses. Despite the big earnings beat, Meta shares sank in after-hours trading due to the company’s capital expenditure, up 36% to $9.2 billion. Meta CEO Mark Zuckerberg further warned of a “significant acceleration” in artificial-intelligence-related infrastructure expenses next year, sending mixed signals to investors about whether the company’s digital ad sales from its social media business would continue to cover the cost of its massive AI buildout. Dan Ives, Wedbush managing director, on CNBC’s Closing Bell, notes that Meta stock dropping is actually the “wrong reaction” here.
“The formula around building out the infrastructure is maybe not what investors want to hear in the near term, that we’re growing that. But, I just think that the opportunities here are really big, we’re going to continue investing significantly in this and I’m proud of the teams that are doing great work to stand up a large amount of capacity so that way we can deliver world-class models and world-class products.”
-Mark Zuckerberg
Overall META ranks 2nd on our list of the AI stocks investors should not miss. 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 timeframe. 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.
