From Nasdaq:

In 2023, AI made significant advancements, with companies like OpenAI and Anthropic receiving massive investments. Meta Platforms (NASDAQ: META) is emerging as the smartest AI stock to buy due to significant advancements and investments in AI hardware and machine-learning algorithms. Despite heavy expenditure, Meta has managed to maintain a healthy balance sheet and produce substantial free cash flow of $13.6 billion in the third quarter of 2023.

Meta’s machine-learning algorithms and generative AI advancements, like the Llama 2 model, have not only increased user engagement but also made it easier for marketers to create and test ad designs, resulting in higher advertising revenue. The introduction of AI-powered chatbots on Messenger and WhatsApp has also opened up new revenue opportunities for Meta.

Meta’s Llama 2 model may not be the most powerful, but its efficiency in tasks like text summarization is unmatched. It could play a significant role in the development of future generative AI applications as an open-source model, leading to meaningful licensing revenue and supporting Meta’s core revenue sources in its family of apps. With analysts’ 2024 earnings expectations in mind, Meta is an inexpensive AI stock to invest in, as compared to other deep-pocketed companies investing in AI, providing a compelling outlook for its overall earnings growth.

The Motley Fool Stock Advisor analyst team has identified what they believe are the 10 best stocks for investors to buy now, and while Meta Platforms wasn’t one of them, the 10 stocks that made the cut could produce significant returns in the coming years. If you’re considering investing in Meta Platforms, it’s essential to weigh the potential returns against the 10 stocks identified by The Motley Fool Stock Advisor analyst team.



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