Meta Platforms (META) leads in AI investments, up 23% YTD and focusing on future growth.

The “Magnificent 7” tech giants have had mixed fortunes, with Alphabet, Apple, and Tesla in the red. Meta Platforms (META) leads the pack with 23% YTD gains, focusing on AI investments. Meta raised its 2025 capex guidance to $64-72 billion, emphasizing AI and data centers, and acquired a 49% stake in Scale AI.

Meta continues its growth through acquisitions, recently hiring Scale AI’s founder. Zuckerberg has been aggressively hiring AI talent, including former GitHub CEO Nat Friedman. Meta aims to develop advanced AI models and wearables, positioning itself as a leader in superintelligence delivery.

Meta is integrating more AI features into WhatsApp for business, targeting better user engagement and advertising. Despite the recent rally, Meta trades close to its target price of $722.96, earning a “Strong Buy” consensus from analysts. The company’s forward P/E ratio is elevated at 29x, but positive sentiment around its AI strategy drives optimism.

Meta’s AI initiatives and potential in AI glasses position it as a strong AI play. The company’s focus on the metaverse and upcoming AI products could drive future growth. Despite current valuations, holding shares in Meta for its AI potential seems promising.

Read more at Yahoo Finance: Up Nearly 23% in 2025, Is Meta Platforms Still the Best AI Stock to Buy?