5. Meta Platforms, Inc. (NASDAQ:META)
Number of Hedge Fund Holders as of Q4: 262
Jericho Capital Asset Management’s Equity Stake: $358.83 Million
OpenAI and Meta Platforms, Inc. (NASDAQ:META) are in discussions with Reliance Industries to expand their artificial intelligence (AI) footprint in India. OpenAI has identified the Indian company as a potential distribution partner for its AI products, including ChatGPT, allowing Reliance to enhance product distribution and advertising across India’s growing AI market. Additionally, Reliance is considering selling OpenAI’s models to Indian businesses via an application programming interface (API), enabling enterprises to integrate advanced AI capabilities into their operations. To align with India’s data sovereignty principles, OpenAI’s models could be hosted locally within Reliance’s infrastructure, ensuring that sensitive customer data remains within national borders.
Meta Platforms, Inc. (NASDAQ:META) is also exploring a partnership with Reliance to strengthen its position in India’s AI sector. Having previously invested in Jio telecommunications, Meta aims to leverage this collaboration to expand its digital and AI initiatives in the country. This potential alliance would reinforce Meta’s leadership in Indian technological innovation while benefiting from Reliance’s vast market presence. However, Indian regulators are closely monitoring the influence of foreign AI firms as they work on policies to balance technological advancements with the protection of domestic innovation. The evolving regulatory landscape will play a key role in shaping how these global tech giants operate within India’s AI ecosystem.
Meta Platforms, Inc. (NASDAQ:META), meanwhile, continues to invest heavily in AI infrastructure, with projected expenses reaching up to $119 billion for 2025. The company is expanding its Meta Training and Inference Accelerator (MTIA) program, aiming to develop in-house AI chips to reduce reliance on Nvidia. Despite previous setbacks, Meta’s first AI inference chip for recommendation systems has been successful, highlighting its ambition to take greater control over its AI ecosystem. Financially, Meta’s rapid AI advancements have driven strong performance, with Q4 2024 revenue surging 21% year-over-year to $48.4 billion, exceeding analyst expectations. Earnings per share (EPS) also jumped 50% to $8.02, further solidifying Meta’s dominance in digital advertising and AI-driven growth.
Rowan Street Capital stated the following regarding Meta Platforms, Inc. (NASDAQ:META) in its Q4 2024 investor letter:
“Meta Platforms, Inc. (NASDAQ:META): Investment Initiated: April 2018: Internal Rate of Return (IRR*): 22% *IRR represents the annualized rate of return on an investment, accounting for the timing and magnitude of cash flows over the holding period.
For META, our 22% IRR aligns closely with the company’s compounded growth in earnings per share (EPS) and free cash flow per share during the 6 years holding period.
Looking ahead, Meta is expected to grow its revenues, earnings, and free cash flow per share at mid-teens rates over the next two years. There’s a good possibility that it could exceed these estimates, considering the breadth of growth initiatives currently in place, such as advancements in Al, monetization of Reels, expansion into business messaging, and the ongoing development of the metaverse…” (Click here to read the full text)
