Forget Nvidia: Buy This "Fab Four" Stock at a Discount

Last year, everyone spoke about the "Magnificent Seven," technology industry leaders who powered S&P 500 advances. After a handful of those stocks fell, the attention is on the "Fab Four"—the four Magnificent Seven stocks that continue to rise. Microsoft, Amazon, Meta Platforms (NASDAQ: META), and Nvidia are market leaders.  

Nvidia is the greatest gainer this year, up 80%, and still a solid investment. A better deal is among these Fab Four stocks. This player has a strong moat, a respectable profits track record, exposure to AI, and promising long-term prospects. Forget Nvidia—buy this Fab Four stock now.  

More than 3.1 billion daily users Meta, which makes Facebook, Messenger, Instagram, and WhatsApp, is well-known. Over 3.1 billion individuals use Meta's apps daily, therefore advertisers flock to the platform to reach these prospective buyers.  

The majority of Meta's $134 billion income last year came from advertising. Its strong moat (competitive advantage) makes this unlikely to alter. Knowing your contacts may be gone makes switching social media platforms difficult. This keeps people loyal, and Meta's efforts to make its platforms more engaging and useful may strengthen this.  

This takes me to Meta's AI investment, which it is calling its largest theme this year. The company has added Meta AI, a sophisticated conversational assistant, to its apps, but it's not done. Meta CEO Mark Zuckerberg aims to integrate AI into all Meta goods and services so users may utilize it for leisure and business.  

Meta is adding 600,000 GPUs by year's end to boost its computer power. AI models and platforms use GPUs. They train and infer large language models (LLMs) to handle complicated issues.  

Becoming industry standard Llama 3, Meta's LLM, is under training. Meta AI and other AI products use Llama technology, but the company isn't keeping it to itself. Meta obtains feedback and users by making its software open source, putting it on track to become an industry standard.  

Meta may become an AI leader and social media giant in the future. The company's finances should allow it to invest in technology to achieve these aims. Meta announced its first dividend in the last quarterly report, expressing its confidence that it can fund development and reward shareholders after acting last year in Zuckerberg's "year of efficiency  

What does it cost to access such a player? Less than you think. Meta is currently trading at 24x ahead earnings expectations, the Fab Four's cheapest. As noted, Nvidia's stock has room to expand, but it's not the only one. Meta is cheaper and has the potential for a winning AI story and a profitable social media business. That means I'd purchase this Fab Four bargain instead of Nvidia right now.  

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