Top 10 AI Stocks on Wall Street’s Radar

1.     Meta Platforms Inc (NASDAQ:META)

Number of Hedge Fund Investors: 235

Meta Platforms Inc (NASDAQ:META) is a global technology company. On January 3^rd, Wolfe Research analysts led by Shweta Khajuria laid out their top stock picks for 2025, rating them all at “Outperform”. One internet stock the analysts cited opportunities in was Facebook-parent Meta Platforms Inc., with Khajuria lifting the target price for the stock to $730 from $670. Even though Meta has demonstrated outperformance in the last two years, Wolfe Research believes it still offers upside to investors. According to Khajuria, the social media giant has a strong positioning in artificial intelligence.

Highlighting the company’s advancements in AI, the firm believes that the company’s multi-year investments are now well-positioned to demonstrate potential returns on invested capital (ROIC). There is also potential for return on investments to grow including for its newer social media app Threads. Moreover, considering there is a ban on TikTok, it could translate to an upside of around 10% to Meta’s earnings. TikTok may face a ban in the US amid concerns that the Chinese government could gain access to sensitive information through it. TikTok is owned by the Chinese company ByteDance. Consequentially, lawmakers have passed a bill that forces China-based ByteDance to either sell the app or have it banned in the country.

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.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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