Meta Platforms Inc. (META) Positioned for AI Growth With Wedbush Best Ideas Upgrade

Meta Platforms Inc. (NASDAQ:META) is one of the top stocks offering high upside potential in data centers and AI. On November 13, Wedbush added Meta Platforms Inc. (NASDAQ:META) to its Best Ideas list and kept its $920 price target, pointing to stronger sentiment after a solid Q3.

The firm said Meta’s higher spending makes sense given the push to weave AI deeper into its ad and content systems, and it highlighted steady gains in the core advertising business, progress from Meta AI and Superintelligence Labs, and new AI-driven hardware. On October 29, Meta reported a strong third-quarter, posting EPS of $7.25 versus $6.69 expected and surpassing $50 billion in revenue for the first time.

Earlier on October 30, Meta Platforms Inc. announced plans to raise $30 billion through its largest bond offering. The company is to raise $30 billion in a six-part bond sale with maturities ranging from five to 40 years. The bond amounts are to range between $4 billion and $6.5 billion. The company has already struck a $27 billion financing deal with Blue Owl Capital to fund its biggest data center project in Louisiana.

The $30 billion capital raise comes as the tech giant’s race against time to fund costly artificial intelligence infrastructure. Like other tech heavyweights, Meta finds itself in a period of heightened investments in AI as it seeks to enhance its offerings. The company is also spending big to attract and retain AI researchers and engineers. Likewise, the investment spree has resulted in significant cost pressures, with employee compensation costs emerging as the second-largest contributor to the cost increase.

Meta Platforms Inc. (NASDAQ:META) is a social networking company that builds massive, AI-focused data centers globally to power its AI services and future technologies. It invests billions in infrastructure, custom-designed chips, and sustainable practices, including renewable energy and water conservation. These facilities address the immense computational needs for AI development, personalized content delivery, and future platforms, such as universal AI agents and immersive experiences.

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. This article is originally published at Insider Monkey.