The artificial intelligence revolution is in full swing, as evidence by the strong results reported by several big tech giants last week. There is perhaps no stronger medium-term tailwind than AI spending and investment; however, for investors putting money to work today, many AI-related stocks have soared this year, pricing in a very strong future.
So which are the best AI stocks to buy now? Perhaps those companies likely to benefit from the AI revolution, but which have either pulled back or trailed higher-profile peers based on near-term concerns.
That makes these three storied tech stocks prime pickups this week for your new AI investment dollars.
Meta Platforms
Facebook and Instagram parent Meta Platforms (NASDAQ: META) plunged following its recent earnings report, but let’s keep things in perspective. The stock had rallied some 50% at one point earlier this year, so it needed an absolutely perfect report to go higher.
Instead, there were some legitimate concerns. Though Meta beat Q1 estimates, management guided somewhat conservatively, for “only” 18% growth in the coming quarter, a deceleration from last quarter’s booming 27% growth. While revenue guidance came in a tad light, CEO Mark Zuckerberg actually increased his forecast for capital investments in artificial intelligence (AI) this year.
Lighter-than-expected revenue and increased spending is certainly a recipe for a sell-off. But that’s probably shortsighted. After all, there’s a good reason the company is ramping up AI investments this year. Not only are current AI investments benefiting Meta’s core social media platform recommendation engines today, but Meta also has the potential to be an AI leader outside of its current core businesses. After all, its Llama 3 large language model has become a best-in-class LLM, especially in the open source community.
Mark Zuckerberg said on the conference call with analysts:
So with the latest models, we’re not just building good AI models that are going to be capable of building some new good social and commerce products. I actually think we’re in a place where…
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