The Market Is Giving Investors an Unbeatable Opportunity to Buy This Long-Term Artificial Intelligence (AI) Winner (Hint: Not Palantir or Nvidia)

Core Insights - The long-term potential of generative AI is significant, with companies like Nvidia, Palantir, and Meta at the forefront of this innovation [1][2][4] - Meta Platforms presents a compelling investment opportunity due to its strong financial performance and strategic focus on AI, despite recent stock price pullbacks [3][4][19] Financial Performance - Meta's revenue increased by 26% year over year in the last quarter, with adjusted earnings per share growing by 20% [6] - The company's operating margin remains healthy at 40%, despite a 3 percentage point compression due to increased AI spending [7] AI Investment Strategy - Meta plans to significantly increase its AI spending, with a focus on building data centers, which requires substantial upfront investment [8][10] - The company is utilizing off-balance-sheet financing through joint ventures to fund its $27 billion data center project in Louisiana [10] Advertising Business Growth - Meta's advertising business is expected to benefit from advancements in AI, with a 14% increase in ad impressions and a 10% rise in average ad prices year over year [14][15] - The development of an AI agent for ad campaign management could democratize advertising for small businesses, potentially increasing overall ad budgets on Meta's platforms [16] Valuation and Market Position - Meta's stock trades at less than 22 times analysts' expectations for 2026 earnings, making it more attractive compared to Palantir and Nvidia [19] - Despite potential short-term slowdowns in bottom-line growth due to AI expenses, the top line is expected to continue growing steadily, indicating a long runway for earnings growth [20]