We recently compiled a list of the 15 AI News You Should Not Ignore. In this article, we are going to take a look at where Meta Platforms, Inc. (NASDAQ:META) stands against the other AI stocks you should not ignore.
Large language models power AI chatbots and they are the hottest items on Wall Street these days. Several hyperscalers have launched their own LLMs and chatbots in the past few months. Any updates related to these chatbots are followed eagerly by analysts. Anthropic, an AI startup that developed the Claude AI model, recently proposed a new standard for connecting AI assistants to the data that powers them. The startup claims that the system, called the Model Context Protocol, which is open source, would help AI models produce better and more relevant responses to queries.
Read more about these developments by accessing 10 Best AI Data Center Stocks and 10 Buzzing AI Stocks According to Goldman Sachs.
In a blog post, the AI startup underlined that as AI assistants gain mainstream adoption, the industry has invested heavily in model capabilities, achieving rapid advances in reasoning and quality. However, the post added, even the most sophisticated models are constrained by their isolation from data — trapped behind information silos and legacy systems. Anthropic claims that MCP ostensibly solves this problem through a protocol that enables developers to build two-way connections between data sources and AI-powered applications.
Read more about these developments by accessing 30 Most Important AI Stocks According to BlackRock and Beyond the Tech Giants: 35 Non-Tech AI Opportunities.
For this article, we selected AI stocks by combing 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: 235
Meta Platforms, Inc. (NASDAQ:META) engages in the development of products that enable people to connect and share with friends and family. On November 25, Raymond James added the stock to the Analyst Current Favorites List while keeping a Strong Buy rating on the shares with a $675 price target. Meta is positioned to benefit from an improving artificial intelligence monetization narrative in 2025 as tailwinds, including recommendation model advancements, drive up engagement by a mid-single to low-double digit amount, the advisory told investors in a research note. The advisory believes engagement with Meta AI will also take shape, opening up a $10 billion-plus search and assistant opportunity in 2026 within select verticals.
Overall META ranks 3rd on our list of the AI stocks you should not ignore. 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.