Top 10 Stocks to Buy According to Adage Capital Management

6. Meta Platforms, Inc. (NASDAQ:META)

Number of Hedge Fund Holders as of Q4: 262

Adage Capital Management’s Equity Stake: $1.22 Billion 

Meta Platforms, Inc. (NASDAQ:META) is making a significant push into AI hardware with its first in-house chip for training artificial intelligence systems, aiming to reduce dependence on Nvidia and lower infrastructure costs. The company has begun small-scale deployment of the chip and may expand production if tests succeed, marking a milestone in its long-term plan to develop custom silicon. Meta Platforms, Inc. (NASDAQ:META) has projected up to $119 billion in expenses for 2025, with AI infrastructure playing a major role. The new training chip is part of Meta’s ongoing Meta Training and Inference Accelerator (MTIA) program, which has had setbacks in the past but recently saw success with its first inference chip for recommendation systems. While Meta continues to be a major Nvidia customer, the push for in-house AI chips signals its ambition to take greater control over its AI ecosystem, particularly as skepticism grows over the long-term scalability of large language models.

Meta Platforms, Inc. (NASDAQ:META) has reinforced its dominance in digital advertising through rapid AI advancements, driving significant financial growth despite evolving industry regulations. In its Q4 2024 earnings report, the company posted a 21% year-over-year revenue increase to $48.4 billion, surpassing analyst expectations of $47 billion. Earnings per share (EPS) soared 50% to $8.02, well above the projected $6.76, leading to a nearly 9% rise in Meta’s stock price. The company’s AI-powered ad targeting and content recommendation systems have strengthened its market position, attracting increased ad spending and bolstering its competitive edge.

Investor confidence in Meta Platforms, Inc. (NASDAQ:META) continues to rise, with institutional backing growing substantially. Hedge fund interest also surged, with 262 funds holding stakes worth nearly $59.4 billion by the end of Q4 2024, up from 235 funds in the previous quarter, according to Insider Monkey’s database. Meta’s strong financials, AI-driven innovations, and unwavering dominance in digital advertising make it a top investment choice, as the company continues leveraging technology to maintain its industry leadership.