Citigroup Identifies AI Stocks Priced Reasonably
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Should l Buy META?
Source: CNBC
Investment Strategy: Citigroup analysts recommend exploring lesser-known stocks that capitalize on the AI boom while offering growth at a reasonable price (GARP), amidst concerns of an AI investment bubble affecting tech sector performance.
Stock Selection Focus: Emphasis is placed on selecting companies with strong cash returns on growth capital expenditures, while avoiding those unable to self-fund, as the tech-heavy Nasdaq has underperformed compared to the S&P 500.
Diverse Stock Recommendations: Citigroup has compiled a list of stocks across various industries, including Adobe, Nvidia, and Eaton, which are seen as having reasonable valuations and strong future earnings potential, despite some red flags regarding inflated growth expectations.
Market Outlook: Analysts caution that earnings disappointments could lead to market corrections, highlighting the importance of focusing on GARP strategies within AI to build a resilient investment portfolio.
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Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 643.220
Low
655.15
Averages
824.71
High
1117
Current: 643.220
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Investor Sentiment: As tech stocks falter, investors may reassess their portfolios, leading to a shift of funds towards other more attractive sectors, thereby affecting the financing capabilities of tech companies.
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