This "Magnificent Seven" Stock Is Set to Skyrocket If Its AI Investments Pay Off

Core Insights - The article discusses the potential upside of AI investments made by tech companies, particularly Meta Platforms, and how these investments are not currently reflected in the company's stock valuation [2][11]. Group 1: Meta Platforms' AI Investments - Meta Platforms is primarily valued based on its legacy business, with its stock price not reflecting the potential of its AI initiatives [3][5]. - The company’s CEO, Mark Zuckerberg, claims that AI advancements could allow AI to code at the level of a mid-level software engineer, potentially reducing high software engineering costs and boosting profits [8]. - AI is expected to enhance Meta's advertising experience by refining audience targeting and improving ad creation, which could lead to increased ad revenue and a larger share of global GDP [9]. Group 2: Market Opportunities and Risks - Meta is integrating AI into devices like glasses, which presents a significant market opportunity, as over a billion people currently wear glasses [10]. - Despite the potential of AI investments, Meta's stock is currently priced based on its legacy ad business, creating an investment opportunity for those willing to hold the stock long-term [11][15]. - The company relies heavily on advertising for revenue, with 98% coming from this source, making it vulnerable to downturns in the ad market [14].