Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks in the Spotlight Today. On July 14, Citizens JMP analyst Andrew Boone reiterated a “Market Outperform” rating on the stock with a $750.00 price target.
Citing a SemiAnalysis report that discusses Meta’s challenges with its Llama AI model, the firm concluded that Meta’s shortcomings in artificial intelligence are mainly coming from its architectural decisions.
Particularly, it talked about Meta’s use of chunked attention versus sliding window attention and expert choice routing instead of token choice routing. Another factor causing challenges for Meta is its data quality issues. For instance, the company doesn’t train on YouTube data, and there are also concerns about how it tests its models.
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Even though Meta is facing all these challenges, the SemAnalysis report expressed optimism that Meta will fill in the AI gaps that it has currently, particularly as it increases its GPU capacity and continues to build a robust AI team.
While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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Disclosure: None.