Morgan Stanley estimates that synthetic intelligence (AI) gross sales throughout infrastructure and software program corporations will improve greater than 600% by 2028.
Meta Platforms is utilizing AI to enhance content material suggestions and advert conversion charges throughout its industry-leading portfolio of social media properties.
Pure Storage develops enterprise storage programs that present the very best density and lowest energy consumption within the {industry}, making them preferrred for AI.
10 shares we like higher than Meta Platforms ›
Morgan Stanley analysts estimate synthetic intelligence (AI) spending throughout infrastructure and software program will improve greater than 600% by 2028. Shopping for inventory in Nvidia and/or Palantir has been a preferred strategy to capitalize on that development, however buyers ought to think about Meta Platforms (NASDAQ: META) and Pure Storage (NYSE: PSTG).
Most Wall Road analysts following the businesses have favorable outlooks. Meta Platforms has a median goal worth of $875 per share, implying 19% upside from its present share worth of $735. And Pure Storage has a median goal worth of $80 per share, implying 4% upside from the present share worth of $77.
Here is why I feel these AI shares are good long-term investments.
Picture supply: Getty Photographs.
Meta Platforms owns three of the 4 hottest social media networks as measured by month-to-month energetic customers. That dominant aggressive place affords the corporate perception into shopper tastes and preferences, which helps it goal media content material and promoting. In flip, Meta Platforms is the second largest advert tech firm worldwide, and it is poised to achieve market share, in response to Morningstar.
The corporate has been investing aggressively in synthetic intelligence (AI), together with customized chips, Llama massive language fashions, machine studying fashions to suggest content material, and AI inventive instruments for advertisers. These efforts are paying off. Customers are spending extra time on Fb and Instagram, and advert conversion charges — which means the variety of clicks and purchases — are growing throughout each social media properties.
Much more formidable, Meta hopes to automate your entire advert creation course of by subsequent 12 months. The Wall Road Journal lately reported, “Utilizing the advert instruments Meta is creating, a model might current a picture of the product it needs to advertise together with a budgetary aim, and AI would create your entire advert, together with imagery, video, and textual content.”
Consequently, Meta has an awesome shot at delivering double-digit income development for a number of years to return. I say that as a result of advert tech spending is forecast to extend at 14% yearly by way of 2032, so Meta would report even sooner income development throughout that interval if it does certainly acquire market share. And that does not even account for its substantial alternative within the nascent sensible glasses market.
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Wall Road estimates earnings will improve at 17% yearly over the following three years. That makes the present valuation of 27 instances earnings look fairly cheap, particularly when the two-year common is 28 instances earnings. Affected person buyers ought to really feel snug shopping for a couple of shares of this AI inventory as we speak.
Pure Storage provides enterprise information storage {hardware}, software program, and providers. It focuses on all-flash arrays, storage programs that comprise solely flash reminiscence reasonably than slower and fewer sturdy hard-disk drives. Its DirectFlash structure provides two to 3 instances the storage density and half the facility consumption as the following closest product in the marketplace.
Analysis firm Gartner lately ranked Pure Storage as a pacesetter in main block storage platforms, in addition to file and object storage platforms. The analysts commented that Pure Storage FlashBlade programs supply the very best density and lowest energy consumption within the {industry}, qualities that make its merchandise adept at supporting synthetic intelligence workloads.
On that notice, Pure Storage earlier this 12 months introduced its next-generation FlashBlade programs. CEO Charles Giancarlo stated, “FlashBlade XL would be the {industry}’s highest-performing storage platform for AI and high-performance computing when it’s delivered.”
As well as, Meta Platforms lately selected Pure Storage to energy its information heart storage infrastructure, and Giancarlo thinks its DirectFlash know-how might grow to be the {industry} normal for all hyperscalers as a result of it provides “unparalleled efficiency and scalability whereas additionally decreasing working prices and energy consumption.”
Wall Road expects Pure Storage’s adjusted earnings to develop at 27% yearly by way of the fiscal 12 months ending in January 2027. That makes the present valuation of 46 instances adjusted look cheap, particularly when the corporate beat the consensus earnings estimate by a mean of 14% over the past 4 quarters. Affected person buyers can buy a small place on this little-known AI inventory as we speak.
Before you purchase inventory in Meta Platforms, think about this:
The Motley Idiot Inventory Advisor analyst group simply recognized what they imagine are the 10 finest shares for buyers to purchase now… and Meta Platforms wasn’t certainly one of them. The ten shares that made the minimize might produce monster returns within the coming years.
Contemplate when Netflix made this record on December 17, 2004… when you invested $1,000 on the time of our suggestion, you’d have $654,759!* Or when Nvidia made this record on April 15, 2005… when you invested $1,000 on the time of our suggestion, you’d have $1,046,799!*
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See the ten shares »
*Inventory Advisor returns as of August 25, 2025
Trevor Jennewine has positions in Nvidia and Palantir Applied sciences. The Motley Idiot has positions in and recommends Meta Platforms, Nvidia, Palantir Applied sciences, and Pure Storage. The Motley Idiot recommends Gartner. The Motley Idiot has a disclosure coverage.
AI Spending Might Soar 600%: 2 Good AI Shares to Purchase in September (Trace: Not Nvidia or Palantir) was initially revealed by The Motley Idiot