Positive. Meta Platforms could outpace Nvidia in 2025 with a boost from AI, revenue growth predicted.

From Nasdaq: 2025-04-10 04:08:00

In 2023 and 2024, AI stocks saw significant gains, but 2025 has been challenging due to market sell-offs. The Nasdaq Composite index is down 15% from its peak, impacted by tariff-related turmoil and economic uncertainty from a potential trade war.

Despite strong recent results, AI leader Nvidia’s stock has dropped 15% YTD due to market conditions causing investors to book profits. However, the company has long-term growth catalysts. Another tech giant, Meta Platforms (NASDAQ: META), could outpace Nvidia’s returns in 2025 with a boost from AI.

Meta Platforms, with 3.35 billion daily active users, offers advertisers AI tools for more efficient customer reach. AI-powered ads on Meta’s platforms had 22% higher returns in 2024 than average ads. The company’s AI ad tools have led to a 14% increase in average ad price and a quadrupling of advertisers using generative AI.

Meta aims to help small businesses with agentic AI functions through its Llama 4 open-source model. With 200 million small business users globally, Meta plans to reduce redundancies and improve services. The agentic AI industry is expected to grow 44% annually through 2034.

Analysts predict revenue growth for Meta Platforms in 2025, with potential to beat projections due to generative AI adoption. The company’s valuation at 24 times trailing earnings is at a discount, making it an attractive investment with a 31% upside potential according to analysts.

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Read more at Nasdaq: Prediction: This Artificial Intelligence (AI) Stock Will Rebound More Than Any Other This Year (Hint: It’s Not Nvidia)