Should You Forget Nvidia and Buy This Favorite AI Stock of Wall Street's Billionaires?

Core Insights - The artificial intelligence (AI) revolution is heavily reliant on Nvidia, whose chips are essential for powering AI models across the industry [1] - Despite Nvidia's market dominance and record sales, its stock performance has disappointed some investors [2] - Meta Platforms has emerged as a top investment choice among hedge funds, with significant holdings in multiple funds [4][10] Company Performance - Meta generated over $40 billion in revenue last quarter, showing consistent double-digit growth since Q1 2023 [5] - The company has invested heavily in AI research, which is expected to create new revenue channels [6] - Meta's free cash flow has increased by 42% over the last year, despite spending over $9 billion on capital expenditures for AI development [12] Market Position - Meta is reasonably priced compared to its peers, with a forward price-to-earnings (P/E) ratio of 26.40, which is lower than some competitors like Amazon and Microsoft [7][13] - The company reaches approximately 3.29 billion users daily across its social media platforms, maintaining significant influence in the market [10] - Meta has successfully launched its consumer AI platform, Meta AI, and integrated it into products like Ray-Ban eyeglasses [11] Investment Considerations - Both Nvidia and Meta are seen as strong picks in the AI sector, with potential for continued growth and market leadership [14]