We recently published an insightful list of 10 AI Stocks That Will Skyrocket. Now, we take a closer look at how Meta Platforms, Inc. (NASDAQ:META) measures up against other burgeoning AI stocks that investors should keep an eye on.
AI (Artificial Intelligence) has transcended mere buzzword status; it’s now woven into the fabric of our daily lives and the operational strategies of businesses. For savvy investors, this development spells opportunity. As AI technologies continue to evolve, certain companies are demonstrating exceptional potential for long-term gains. Whether you’re aiming to diversify your investment portfolio or capitalize on the future of technology, this article will explore some of the most promising AI stocks currently on the horizon. Following an impressive surge in AI stock performance in 2024, recent geopolitical tensions have led to a temporary downturn—this may present a golden opportunity to invest in AI stocks while they are undervalued.
In a recent interview with CNBC, Cathie Wood, CEO and CIO of Ark Invest, reinforced her bullish outlook on the AI sector despite its recent dips. Wood regards the current status of AI as reminiscent of the internet’s early days in the 90s, foreseeing a trajectory ripe with potential. She specifically highlighted the promise of “robotaxis” as a low-term objective and the transformative role of humanoid robots in the longer term. Notably, Wood emphasized that one of the most overlooked implementations of AI lies in healthcare. With AI at the forefront, advancements in disease treatment are set to accelerate, particularly through revolutionary sequencing technology that leverages AI for rapid and precise genetic analysis.
A particularly hot segment of AI is Generative AI, which crafts personalized responses for users based on real data, opening up a lucrative investment cycle exceeding $200 billion annually. The arena is dominated by the ‘magnificent 7’—major tech firms fiercely competing for dominance in Generative AI. Furthermore, a burgeoning trend revolves around large language models (LLMs). Morgan Stanley reports that leading companies in this domain are prioritizing high-performance computing chips and elite software solutions to deliver AI advancements essential for both businesses and consumers. While initial applications of LLMs have focused on content generation, summarization, and categorization, experts believe that the true potential lies in applying AI reasoning to enterprise data—an opportunity still waiting to be fully exploited.
To curate our list of AI stocks poised for significant growth, we analyzed AI exchange-traded funds (ETFs), selecting stocks based on Wall Street analysts’ average price targets and hedge fund sentiments from Q4 2024.
Note: All data was recorded on April 21, 2025.
At Extreme Investor Network, we focus on identifying the top stock picks that hedge funds gravitate towards. Our research consistently highlights that mimicking the strategies of elite hedge funds allows us to outperform the market. Our quarterly newsletter’s approach, which incorporates 14 small-cap and large-cap stocks every quarter, has yielded an astounding 373.4% return since May 2014, significantly outpacing its benchmark by 218 percentage points.
Meta Platforms, Inc. (NASDAQ:META), known as a social media titan, is pivoting heavily toward AI technologies. AI plays a critical role in virtually all aspects of Meta’s operations, from user-facing applications to its ambitious metaverse projects. The company employs deep learning and advanced AI models to enhance feed ranking and tailor reels recommendations. With initiatives like the LLaMA series—Meta’s open-source language models that rival those of ChatGPT and Google’s Gemini—Meta is positioned as a significant player in AI innovation. These models empower various AI tools across Meta’s platforms, setting the stage for future breakthroughs in productivity, content generation, and enhanced search capabilities.
Piper Sandler analyst Thomas Champion recently assigned an Overweight rating to Meta stock, setting a price target of $610. He pointed to the company’s solid advertising trends and a healthy revenue outlook, with Q2 estimates fluctuating between $42.5 billion and $45.5 billion. While challenges in e-commerce and exposure to the Chinese market remain, Champion asserts that Meta is financially robust and undervalued. Additionally, Meta’s AI assistant is on track to become the most widely utilized globally, reaching over a billion users, solidifying the company’s position in personalized AI solutions. Meta is also expanding its infrastructure significantly, aiming to add 1 gigawatt of AI-focused capacity next year and construct a new 2-gigawatt data center.
Overall, META ranks 8th on our list of AI stocks set to skyrocket. While we see immense growth potential in META, our analysis indicates that various AI stocks offer promising returns with shorter timelines. For investors seeking alternatives, particularly AI stocks trading at less than five times their earnings, our report on the cheapest AI stock is worth a read.
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Disclosure: None. This article is originally published at Insider Monkey.