Meta Platforms, Inc. (NASDAQ: META) is among the AI Stocks on Market Radar. Truist Securities reiterated a Buy rating on the stock with an $875.00 price target on January 14. Despite underperforming peers since Q3 earnings, the firm believes investor fears are already reflected in the stock’s price.

Concerns about Meta’s capital and operating expenditure plans for 2026 have led to underperformance compared to peers. Llama 4’s disappointing performance has also raised doubts about the company’s position in AI development compared to other major tech firms.

Truist Securities suggests that Meta’s valuation already accounts for many of these concerns. However, the firm believes the stock has the potential to grow faster for longer and catch up in AI development.

Heading into earnings, Truist Securities anticipates META’s results to exceed expectations due to robust user engagement and higher monetization from improved ranking and recommendations. Revenue and Capex/Opex guides for 1Q are expected to align with consensus estimates.

While recognizing META’s potential, Truist Securities believes other AI stocks offer greater upside potential and less downside risk. For those seeking an undervalued AI stock that could benefit from Trump-era tariffs and the onshoring trend, check out the free report on the best short-term AI stock.

Disclosure: None.

Read more at Yahoo Finance: Truist Reiterates Buy on Meta Platforms (META), Says AI Fears Are Priced In