Artificial intelligence (AI) is a trending topic on Wall Street, but the implementation of AI technology may take longer than expected. While Nvidia is a notable AI chip company, Meta Platforms, known for its social media empire, is an underrated player in the AI field. Meta is heavily investing in AI, aiming to accumulate 350, 000 Nvidia H100 graphics processing chips by year-end. These chips are crucial for AI workloads and Meta's investment in AI is substantial, with projected capital expenditures of $35-40 billion in 2024. CEO Mark Zuckerberg has emphasized the importance of AI in Meta's business, integrating AI tools into their social media apps and leveraging it in their augmented reality products.

Alongside its existing profitable business, Meta sees AI as an opportunity to enhance its advertising revenue and create new streams of income. Despite the potential risks associated with AI, Meta's strong financial position reduces the risk for investors. The company's stock is also attractively valued, with a forward price-to-earnings ratio of 24 and a PEG ratio of 1. 3. Although projections are not guaranteed, Meta's history of generating outstanding returns on invested capital suggests the potential for strong performance.