2 AI Stocks to Buy in 2026, and 1 to Avoid
Yahoo Finance·2026-01-16 22:05

Group 1: AI Investment Opportunities - Artificial intelligence (AI) is generating excitement on Wall Street, presenting investors with attractive long-term opportunities [1] - Not all AI stocks are equally promising; the article evaluates three AI stocks, identifying two as attractive and one as less favorable [2] Group 2: Meta Platforms - Meta Platforms (NASDAQ: META) is heavily investing in AI, which is positively impacting its financial results, with strong revenue and earnings growth attributed to AI-driven engagement on its platforms [4] - The company is gathering more user data through deeper engagement, enabling targeted advertising campaigns, although its substantial AI investments have caused some investor concern, leading to a drop in share prices after its third-quarter earnings report [5] - Meta's ecosystem of over 3.5 billion daily active users presents numerous monetization opportunities beyond advertising, and its AI investments could lead to significant future revenue streams [7][8] Group 3: Apple - Apple (NASDAQ: AAPL) has not yet fully capitalized on AI compared to its peers, but the success of the iPhone 17, which includes various AI features, is driving a strong renewal cycle [11] - Revenue growth for Apple in the last two quarters is the highest in three years, with positive guidance suggesting continued improvement [11]