Top 10 Stocks to Buy According to Two Sigma Investments

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

Number of Hedge Fund Holders as of Q4: 262

Two Sigma Investments’ Equity Stake: $725.97 Million 

Meta Platforms, Inc. (NASDAQ:META) is making a significant move into artificial intelligence hardware with its first proprietary chip designed for AI training. This initiative aims to decrease reliance on Nvidia and subsequently lower infrastructure costs. The company has begun deploying the chip on a small scale and may expand production if the initial tests prove successful, marking a key step in Meta’s long-term strategy to develop custom silicon. Meta has projected expenses of up to $119 billion for 2025, with AI infrastructure playing a crucial role. This new training chip is part of Meta’s broader Meta Training and Inference Accelerator (MTIA) program, which, despite past setbacks, has achieved success with its first inference chip for recommendation systems. While Meta Platforms, Inc. (NASDAQ:META) remains a significant Nvidia customer, its efforts to create in-house AI chips highlight its ambition to control more aspects of its AI ecosystem, especially as doubts grow over the long-term scalability of large language models.

Meta Platforms, Inc. (NASDAQ:META) has further solidified its leadership in digital advertising through rapid AI advancements, leading to substantial financial growth despite shifting industry regulations. In its Q4 2024 earnings report, the company recorded a 21% year-over-year revenue increase to $48.4 billion, exceeding analyst estimates of $47 billion. Earnings per share (EPS) surged 50% to $8.02, significantly outpacing the projected $6.76.

Investor confidence in Meta Platforms, Inc. (NASDAQ:META) remains strong, with growing institutional support and heightened hedge fund interest. By the end of Q4 2024, 262 hedge funds held stakes in the company, totaling approximately $59.4 billion—an increase from 235 funds in the prior quarter, as reported by Insider Monkey’s database. With its robust financials, continued AI innovations, and dominance in digital advertising, Meta is well-positioned for long-term success. The company’s strategic focus on AI and advertising technology underscores its ability to sustain growth and maintain industry leadership, making it an attractive investment option.