Meta Platforms, Inc. is highlighted as one of the AI Stocks on the Market’s Radar. BofA Securities reiterated a “Buy” rating with a $810.00 price target. Despite recent multiple compression, the firm remains optimistic about the stock driven by key near-term catalysts. Investors are cautious due to concerns about AI spending and rising operating costs.

Meta’s stock has underperformed the NASDAQ and Alphabet in 2025 despite increased earnings estimates. The 2026 P/E multiple contracted as AI sentiment deteriorated and Opex concerns grew. Despite these challenges, potential catalysts like expense guidance and LLM launch in 2026 are on the horizon.

Management’s commentary on the costs to build LLMs versus licensing may improve sentiment among investors. Meta Platforms focuses on expanding advertising capabilities and investing heavily in artificial intelligence and the metaverse. While the stock has potential, other AI stocks may offer greater upside potential and less downside risk.

Investors interested in AI stocks can explore trending options on Wall Street for more opportunities. Disclosure: None.

Read more at Yahoo Finance: BofA Reiterates Buy on META as AI Spending Fears Ease