We recently published a list of 17 Trending AI Stocks on Latest Analyst Ratings and News. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against the other trending AI stocks.
The AI industry continues to be highly dynamic, with significant growth anticipated across various sectors in 2024. The expansion of generative AI, which saw exponential growth in 2023, is expected to continue this year, potentially unlocking trillions of dollars in value as businesses move from pilot projects to broader implementation. This shift suggests that 2024 will be a pivotal year for AI as companies aim to leverage capabilities more fully to drive efficiency, reduce costs, and innovate across different industries. The market for generative AI is forecasted to grow rapidly, with a compound annual growth rate of close to 60%, reaching a valuation of around $37 billion by 2028. This growth is fueled by the widespread adoption of AI technologies in areas such as healthcare, finance, and customer service.
Read more about these developments by accessing 33 Most Important AI Companies You Should Pay Attention To and Billionaire Druckenmiller is Betting on AI
The AI revolution is already transforming operations across the world by automating tasks, analyzing large datasets, and enhancing predictive capabilities. The healthcare sector, for example, is poised for substantial advancements due to AI, with the market expected to grow to around $188 billion by 2030, driven by innovations in genomics, drug discovery, and personalized medicine. Edge computing is another area likely to see significant development in 2024, as it becomes increasingly critical for enabling AI applications that require real-time data processing. The move towards edge computing, where data is processed closer to the source, is expected to reduce latency and improve the performance of AI systems, particularly in sectors like autonomous vehicles, IoT, and industrial automation.
This trend underscores the growing importance of a robust semiconductor supply chain, especially as global trade tensions and geopolitical events continue to impact the availability of critical components like chips. Experts also emphasize the growing importance of ethical considerations and responsible AI. As AI technologies become more deeply embedded in various aspects of society, concerns around privacy, bias, and security are likely to intensify, prompting calls for clearer regulatory frameworks and guidelines to ensure that AI is developed and deployed responsibly. The rapid growth will also bring challenges related to talent acquisition, supply chain management, and the need for responsible AI practices. As such, the industry is likely to be marked by both tremendous opportunities and complex challenges in the near term.
READ ALSO 10 Best Small-Cap AI Stocks to Buy and 10 Tech Stocks to Monitor Amid Market Volatility According to Bernstein Analyst.
Our Methodology
For this article, we selected AI stocks based on the latest news and analyst ratings. 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).
Meta App 3D sign
Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders: 219
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and wearables worldwide. A few weeks after announcing that spending on AI and related tech would inch higher in the coming months, the company has revealed plans to shut down an augmented reality (AR) studio to focus investments in other areas. In a recent post, the firm said that the decision is part of a plan to shift resources to the next generation of experiences, across new form factors like glasses.
Earlier this week, Meta Platforms, Inc. (NASDAQ:META) announced that it had signed a deal with Sage Geosystems to receive geothermal energy to support AI data centers in the US. The first phase of this project is expected to be online and operating in 2027. The firm has committed to investing in sustainable energy as the demand for power rises across the US. Meta has contracted over 12,000 MW in renewable energy projects over the past few years.
Overall, META ranks 4th on our list of our list of trending AI stocks on latest analyst ratings and news. While we acknowledge the potential of Meta Platforms, Inc. (NASDAQ: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 Platforms, Inc. (NASDAQ: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 was originally published at Insider Monkey.
