Meta Platforms(META) The Motley Fool·2025-03-25 07:35Core Viewpoint - The recent sell-off in AI stocks, particularly Nvidia, has created attractive investment opportunities in other companies like Micron Technology, Oracle, and Meta Platforms [1][3]. Group 1: Nvidia and Market Context - Nvidia's stock has dropped over 20% from its high at the beginning of the year due to disappointing financial results and external factors such as trade policies [3][2]. - The sell-off was triggered by advancements in AI technology from competitors, particularly China's DeepSeek AI, which developed a more efficient large language model [1][3]. Group 2: Micron Technology - Micron Technology supplies high-bandwidth memory (HBM), a critical component for Nvidia's chips, and is well-positioned to benefit from the growing demand for memory in AI applications [4][6]. - The company is experiencing a significant increase in demand for memory chips, with analysts projecting a 62.5% growth in earnings per share for fiscal 2026, following a 429% increase this year [9]. - Micron's current forward P/E ratio is 15, indicating a low valuation, while its price-to-sales ratio of about 4 aligns with its five-year average, suggesting fair value with upside potential [10]. Group 3: Oracle - Oracle has transitioned to support cloud computing platforms, with its database software seeing a 92% sequential revenue growth in Database MultiCloud [12]. - The company has a remaining performance obligation of 65 billion on capital expenditures this year, focusing on enhancing its advertising capabilities [18][20]. - The company is leveraging generative AI to improve ad placements and engagement, with over 4 million marketers using its tools for campaign development [21]. - Despite recent stock price declines, Meta's long-term AI opportunities, particularly in monetizing messaging apps, are significant and may not be fully reflected in its current stock price [23].