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Cathie Wood Highlights Software as the Next Significant AI Prospect – A Notable Share You Might Regret Overlooking in 2025, Given Her Predictions

Meta stock may present an excellent investment opportunity in the realm of artificial intelligence at this moment.

Pals pausing their shopping excursion to relax at a table, grinning as they scrutinize one of their...
Pals pausing their shopping excursion to relax at a table, grinning as they scrutinize one of their mobile devices.

Cathie Wood Highlights Software as the Next Significant AI Prospect – A Notable Share You Might Regret Overlooking in 2025, Given Her Predictions

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Morgan Stanley predicts that four tech titans – Microsoft, Amazon, Alphabet, and Meta Platforms – will collectively spend an astonishing $300 billion on data center infrastructure and chips over the next five years, fueling their aspirations in the realm of artificial intelligence (AI).

Cathie Wood, the mastermind behind Ark Investment Management, which pioneers ETFs centered on cutting-edge tech stocks, envisions software companies leading the AI revolution, boasting the potential to generate an astounding $8 in revenue for every $1 they invest in chips provided by companies like Nvidia.

While these colossal tech titans could fetch an immense profit from their AI infrastructure investments, one standout company promises to entice investors eagerly looking to buy Meta Platforms stock by 2025 – and here's why.

Meta's Llama 4: A Game-Changer in AI

Meta, the corporation governing social media giants like Facebook, Instagram, WhatsApp, and Messenger, with nearly 3.3 billion daily users worldwide, is reinventing how people interact by embracing AI.

Meta designed an AI-powered content recommendation engine that learns each user's preferences, tailoring their social feeds to maintain engagement and influence ad revenue. This forward-thinking strategy led to a surge in user engagement, boosting Facebook's daily viewing time by 8% in 2023 and Instagram's by 6%.

Meticulously leveraging AI, Meta unveiled new features like Meta AI, granting users access to a virtual assistant within their apps, generating images, text, and even participating in group chats to facilitate debates or suggest fun activities.

The success of an AI assistant hinges on its underlying large language model (LLM), and thanks to Meta's immense pool of data from trillions of social media posts, they've created an advanced family of LLMs referred to as Llama. In contrast to closed-source LLMs forged by competitors like OpenAI and Anthropic, Llama is open to the public, allowing for rapid bug identification and continuous improvement.

Meta's Llama 3.2 currently proves to be its flagship LLM, but CEO Mark Zuckerberg projects the company will debut Llama 4 in 2025. With Llama 4's exponential improvement pace, Zuckerberg anticipates it will surpass its industry rivals, potentially outpacing start-ups like OpenAI and Anthropic by years.

Meta's Lucrative Strategies in Monetizing New Tech

Meta posted record-breaking revenue of $40.6 billion during Q3 2024, primarily derived from advertising sales. Meta has an extraordinary track record for introducing new features and tapping into their monetary potential, as was the case with Stories and Reels. Meticulously integrated AI and new features like Meta AI have already amassed 500 million monthly active users, providing possibilities for future monetization.

Advertisers could pay to incorporate their websites or products within Meta AI's responses, while new features like Business AI could net additional revenue for Meta. Businesses could even customize their AI-powered customer service representatives through training on their product inventory or by fine-tuning their responses to better reflect their unique branding.

Meta is priced attractively compared to its AI peers in the tech landscape, yet boasts a notably lower P/E ratio than its competitors. Investors can take advantage of Meta's promising future driven by AI innovation while securing competitive returns. This unique combination makes Meta a compelling pick among the AI giants poised to excel in the years ahead.

The predicted collective spending of $300 billion on data center infrastructure and chips by Microsoft, Amazon, Alphabet, and Meta Platforms over the next five years highlights the significance of investing in tech companies with a strong focus on finance and technology, especially in the realm of artificial intelligence.

As Meta's Llama 4, set to debut in 2025, is projected to surpass its industry rivals, this advancement in AI technology could potentially drive significant returns for investors who buy Meta Platforms stock, further emphasizing the importance of finance and investing in this sector.

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