Group 1: AI Market Overview - The AI landscape is dominated by companies involved in infrastructure, software, and consumer applications, indicating that AI is a permanent fixture in the business world [1] - Investments in AI infrastructure are rapidly increasing, with expectations that AI will significantly impact global jobs and generate trillions in economic growth [2] Group 2: Investment Opportunities - Price declines in leading AI companies should be viewed as buying opportunities for long-term investors [3] Group 3: Company-Specific Insights - **Palantir Technologies**: Specializes in custom AI software for government and corporate clients, with revenue growth accelerating since the launch of its AI Platform. Currently has 622 commercial customers out of over 20,000 potential large companies in the U.S. [5][6] - **Arm Holdings**: Designs chip architectures and earns revenue from licensing. Has shipped over 310 billion Arm-based chips and is expected to grow earnings by 22% annually, but has a high P/E ratio of 85 [7][9] - **Apple**: Has a vast AI opportunity with over 2.3 billion active users but is currently facing challenges with its AI initiatives. Expected to achieve double-digit earnings growth, but should be bought at a lower valuation than its current P/E of 30 [10][11] - **Meta Platforms**: Utilizing AI to enhance its advertising business and has developed the Llama AI model. Anticipates mid-teens annualized earnings growth, making it a strong buy on pullbacks [12][13] - **Broadcom**: Experiencing growth from AI networking chips, with a 46% year-over-year revenue increase in AI-related semiconductors. Expected to grow earnings by 25% annually and has a strong dividend history [14][15]

Group 1: Amazon - Amazon is a leader in e-commerce and cloud computing, focusing on AI model customization and deployment through its Bedrock and SageMaker platforms, which provides a cost advantage with custom chips for AI training and inference [4][6] - Amazon operates the world's largest fleet of mobile robots, having deployed its millionth robot, which enhances efficiency by detecting damaged goods and navigating tight spaces [5] - The introduction of the DeepFleet AI model aims to coordinate robot movements, improving delivery routes and overall operational efficiency, leading to strong earnings growth [6] Group 2: Broadcom - Broadcom benefits from the AI infrastructure buildout, with a 70% increase in AI networking revenue last quarter due to its portfolio of networking components [7] - The company is a key player in custom AI chips, having assisted Alphabet in designing Tensor Processing Units (TPUs) and is now working with multiple customers on custom AI application-specific integrated circuits (ASICs) [8][9] - Broadcom estimates that its three most advanced customers could deploy 1 million AI chip clusters by fiscal 2027, representing a serviceable addressable market of $60 billion to $90 billion [9] Group 3: Meta Platforms - Meta Platforms operates one of the largest digital advertising platforms, leveraging its Llama AI model to enhance user engagement and ad performance, with ad impressions up 5% and average ad prices up 10% last quarter [10][11] - New monetization opportunities are emerging through ads on WhatsApp and Threads, which has over 350 million monthly users, contributing to a solid growth outlook [12][13] Group 4: Philip Morris International - Philip Morris International is experiencing growth through Zyn nicotine pouches, with shipments up 53% last quarter, and has raised its full-year guidance to 800 million to 840 million cans [14] - The company sold over 37 billion heated tobacco units last quarter, with strong growth in Japan and Europe, and is preparing for a broader U.S. rollout of Iqos [15][16] - Zyn is six times more profitable than traditional cigarettes, and Iqos is more than twice as profitable, positioning Philip Morris as a rare growth stock in a defensive industry [16] Group 5: E.l.f. Beauty - E.l.f. Beauty is set to acquire Rhode, a skincare and cosmetic brand that generated $212 million in sales with minimal advertising, which could be transformational for the company [17] - The acquisition will enhance distribution through established relationships with retailers like Ulta Beauty and Target, providing a growth runway [18] - The deal diversifies E.l.f. into prestige skincare, potentially boosting margins and expanding its reach to a more affluent demographic [19]

Meta has reportedly convinced three of OpenAI’s researchers to jump ship.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.Lucas Beyer, Alexander Kolesnikov and Xiaohua Zhai, all stationed with OpenAI’s Zurich office ...

Core Viewpoint - Meta Platforms is making significant investments in artificial intelligence, particularly through a $14.3 billion investment in Scale AI, which is expected to enhance its AI capabilities and attract top talent [1][2][13] Investment Details - Meta has acquired a 49% non-voting stake in Scale AI and will spend $450 million annually on its platform, gaining access to valuable proprietary data sets [1][5] - The investment also brings Scale's founder and CEO, Alexandr Wang, to lead a new AI "superintelligence" lab at Meta [5][6] AI Strategy and Talent Acquisition - Meta has faced challenges in attracting top AI talent, exacerbated by disappointing results from its Llama AI model [6] - The company is focused on building advanced AI systems to enhance its existing products rather than commercializing the AI model itself [7][8] Future AI Services - Meta is developing an AI service that can autonomously create and manage ad campaigns, which is expected to launch by the end of next year [9][10] - This service could increase demand for advertising on Meta's platforms by lowering barriers for businesses to advertise, potentially leading to higher ad prices [11] Competitive Position - Meta is well-positioned to leverage AI due to its extensive platform and financial resources, making its investment in Scale a strategic advantage [13] - The stock is currently trading at approximately 27 times forward earnings, suggesting it may be undervalued [13]

Core Insights - Meta Platforms has experienced significant stock performance, with a 97% return since the beginning of 2024, outperforming the NASDAQ index which increased by 31% during the same period [3][10] - The company's revenue growth is primarily driven by an increase in ad impressions and the average price per ad, alongside a 7.5% growth in daily active users [5][9] - Meta's net income margin has expanded from 29% in 2023 to 39% currently, contributing to a net profit increase of 72% from $14.87 to $25.58 [6] Revenue Growth Factors - Meta's revenue growth is attributed to a rise in ad impressions and the average price per ad, with a notable increase in daily active users from 3.19 billion to 3.43 billion [5][9] - The company is leveraging AI initiatives to enhance advertising effectiveness and generate more content, which is expected to further boost revenue [5][9] Valuation Metrics - Meta's Price-to-Sales (P/S) ratio has increased by 54%, from 6.9x in 2023 to 10.6x currently, reflecting investor optimism [8][9] - Revenue growth has been significant, with an increase from $135 billion to $170 billion, alongside a slight decrease in total shares outstanding [8] AI Investment Impact - Meta's proactive investment in AI is a key driver of its advertising revenue growth, with the integration of generative AI across its platforms [9][13] - The company has invested $77 billion in capital expenditures since 2023 and plans to allocate an additional $64 to $72 billion for AI infrastructure this year [13] Stock Performance Context - Meta's stock performance has been volatile, with returns of 23% in 2021, -64% in 2022, 194% in 2023, and 66% in 2024, indicating periods of underperformance compared to the S&P 500 [10][12] - Current valuation suggests that Meta's stock is fully valued at approximately $702 per share, trading at a higher P/S ratio than its four-year average [12][13]

Investment Overview - Meta is reportedly considering a multibillion-dollar investment in AI startup Scale AI, with potential funding exceeding $10 billion [2][4] - Scale AI, valued at $13.8 billion after a recent funding round, provides data labeling services essential for training machine learning models [3][4] Strategic Importance - This investment would represent Meta's largest external expenditure on AI, marking a shift from its traditional reliance on internal research [4] - Meta CEO Mark Zuckerberg has prioritized AI, announcing plans to invest up to $65 billion in related projects this year [5] Competitive Landscape - The move comes as rival tech giants like Microsoft and Google are heavily investing in AI, with Microsoft having invested over $13 billion in OpenAI [4] - Meta's chatbot, utilized by 1 billion users monthly across its platforms, aims to establish its Llama AI model as the industry standard [5] Organizational Changes - Meta is reorganizing its generative AI team to enhance operational efficiency and competitive edge in the rapidly evolving AI sector [6]

Meta CEO Mark Zuckerberg makes a keynote speech during the Meta Connect annual event, at the company's headquarters in Menlo Park, California, on Sept. 25, 2024.Meta Platforms is launching a stand-alone artificial intelligence app and going head-to-head with ChatGPT maker OpenAI.The new offering will utilize the company's Llama AI model to act as an AI assistant for users, the company said Tuesday. It also includes a Discover feed that shows how other are interacting with the tool and can be used to create ...

Core Viewpoint - The recent stock market crash has created opportunities to invest in leading AI stocks, which are currently undervalued despite ongoing market volatility due to tariffs and trade wars [1] Group 1: Nvidia - Nvidia is the market leader in AI chips, holding over 80% market share in the GPU space, with significant revenue growth, having more than doubled sales in each of the past two years [2][4] - The company is well-positioned to benefit from the ongoing AI infrastructure buildout, with predictions that data center capital expenditure will reach $1 trillion by 2028 [3] - Nvidia's stock is currently trading at a forward P/E ratio of 21.5 and a PEG ratio of 0.4, indicating it is undervalued [4] Group 2: Broadcom - Broadcom leads in developing custom AI chips, which, despite higher upfront costs and longer design times, offer better performance and lower power consumption compared to standard GPUs [5] - The company has identified a serviceable market opportunity of $60 billion to $90 billion with its established customers by fiscal year 2026 and has recently added new clients like Apple [6] - Broadcom's stock is trading at a forward P/E of just over 23, and the company has initiated a $10 billion buyback to leverage its low stock price [7] Group 3: Amazon - Amazon, while primarily known for e-commerce, generates most of its profits from cloud computing through Amazon Web Services (AWS), which is experiencing rapid growth due to AI workloads [8][9] - The company plans to invest $100 billion in data center capital expenditure this year to alleviate capacity constraints and has developed custom AI chips for cost advantages [9] - Amazon's stock is trading at 27.5 times this year's analyst estimates, marking one of its cheapest valuations historically [10] Group 4: Meta Platforms - Meta Platforms is advancing AI with its Llama AI model, which has increased user engagement and ad revenue, leading to a 14% rise in average ad prices and a 21% increase in revenue [12] - The company is also developing a new social media platform, Threads, which has grown to 320 million monthly active users and is expected to be monetized in the future [13] - Meta's stock is trading at a forward P/E multiple of only 20.5, indicating it is undervalued [13] Group 5: Salesforce - Salesforce is focusing on becoming a leader in agentic AI through its Agentforce platform, which allows customers to create AI agents with minimal coding [14][15] - The company has introduced an AI agent marketplace to expand use cases, with a consumption-based pricing model of $2 per interaction, representing a significant market opportunity [15] - Salesforce's stock is trading at a forward P/S multiple of 5.7 and a forward P/E multiple under 22, suggesting it is a bargain given its growth potential [16]

Group 1 - Meta has launched its latest Llama AI models, including Llama 4 Scout and Llama 4 Maverick, which are described as the first open-weight natively multimodal models capable of processing various media types beyond text [1] - The company plans to invest up to $65 billion in AI by 2025 to enhance its artificial intelligence capabilities [2] - Meta is exploring premium subscription trials for its AI assistant, Meta AI, aimed at functionalities like booking reservations and video creation [3] Group 2 - OpenAI is planning to release an open-source version of its LLM, the first since GPT-2 in 2019, and is seeking feedback from developers and the public [4] - OpenAI's shift to proprietary models followed a $1 billion investment from Microsoft, which has invested over $13 billion in total [5] - Open-source models, including Meta's Llama, are gaining traction, with Llama reportedly downloaded 1 billion times since its launch in 2023 [6]

The recent stock market sell-off is creating some nice buying entry points, particularly in the tech sector. Uncertainties surrounding tariffs and the economy, coupled with President Donald Trump's "Liberation Day" tariff announcements, pushed stocks down hard.But never fear. Over the long term, the stock market should bounce back, as it always has. Let's look at two leading tech companies that investors can buy this month on this dip.NvidiaConcerns about the economy and artificial intelligence (AI) infrast ...