The last two years have seen the artificial intelligence sector flourish, with demand on Wall Street hitting unprecedented highs. Yet, with companies all jockeying for positions, who will emerge as the industry leader is among one of the most pressing questions. There may be a new front-runner, as Meta Platforms stock has gotten a new bet to lead AI as one billionaire has bought $100 million in the stock.
The company has been thriving almost two months into the year. It recently enjoyed a 20-week streak of gains that saw it thriving. Although that was broken, it has been one of the Magnificent Seven leaders thus far and looks to only build on the momentum this year.
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META to Lead AI Sector? One Billionaire Investor Certainly Thinks So
There is no shortage of competition emerging in the AI sector. Nvidia (NVDA) rode the demand surge to a 178% jump in 2024. They certainly aren’t the only ones. Companies like Microsoft (MSFT) have sought to take the title, investing more than $13 billion in ChatGPT developer OpenAI.
Yet, META may be seeking to take that crown, as the stock has gotten a big bet to lead AI as one billionaire has bought $100 million worth of the stock. Indeed, the investment is betting the company can keep gaining. Over the last six months, share prices have surged 29.06%.
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Steve Mandel and his firm, Lone Pine Capital, purchased 146,000 shares in META, growing its stake in the company. Moreover, its $100 million investment brings its total stake to almost 9% of its $1.19 billion portfolio. This is not only a bet on AI, but a bet on believing it can build on its social media success.
The company’s various social media entities, Facebook, Instagram, Threads, WhatsApp, and Messenger, generated $47.3 billion in profit in Q4. Moreover, it converts $28.3 billion of that into operating profit. Specifically, 61% of its revenue is operating profit, an outstanding mark for the company.
Things should only get better for the company. Currently, META stock has a $775 median target price, up 15% from its price, according to CNN. Moreover, it has a high-end price projection of $900, representing an upside of more than 33%.