Meta Platforms is making a massive AI infrastructure build-out, positioning itself to compete with OpenAI. The stock is undervalued compared to other AI companies, with strong fundamentals and potential for a breakthrough. Despite the $72 billion investment in AI infrastructure, the market is still discounting Meta’s potential.

Meta’s financials support its ambitious AI plans, with revenue rising 22% in Q2 2025. The company established Meta Superintelligence Labs for AGI development. Despite a talent war with high-profile hires and departures, Meta’s competitive advantage lies in its vast user base of 3.48 billion people, giving it unmatched distribution for new AI products.

The valuation gap between Meta and Nvidia is significant, with Meta’s capex plan equaling two-quarters of Nvidia’s data-center revenue. Meta is focusing on AGI, a key area of competition among tech giants. With its strong cash flow and AI initiatives, Meta offers significant upside potential at a reasonable valuation.

Meta’s infrastructure investments are setting the stage for its AI future. With the ability to self-fund its AI build-out, Meta has a unique advantage over competitors. The stock offers limited downside risk with a profitable core business and substantial upside potential if its superintelligence efforts succeed in the long run.

Read more at Nasdaq: Is Meta Platforms the Best AI Stock to Buy Now?