Roth Capital’s Kulkarni identifies Meta as the top company delivering strong returns on AI investments, highlighting its advancements in AI integration, AR/VR development, and accelerating revenue growth compared to peers like Google and Amazon. Despite some market skepticism, he views Meta’s AI strategy as a transformative, long-term opportunity akin to the iPhone launch, with significant potential for future value creation.
In the discussion, Roth Capital’s Kulkarni highlights Meta as the standout company in terms of return on investment in AI infrastructure over the past 12 to 15 months. Meta has shown accelerating revenues and growth that outpaces the industry, making it a clear example of successful investment in AI. However, while the past performance is strong, there remains some uncertainty about how the company will capitalize on future AI developments, particularly in the realm of superintelligence and generative AI.
Kulkarni emphasizes Meta’s significant investments in augmented reality (AR) and virtual reality (VR), particularly in developing AR/VR glasses, which are now expected to launch around 2027. This long-term project represents a major financial commitment and a key part of Meta’s AI strategy. Additionally, Meta’s integration of AI into its three major mobile apps, which have billions of daily users, is seen as a monumental opportunity to create highly engaging and intelligent platforms, further solidifying Meta’s position in the AI space.
When comparing Meta to other tech giants like Alphabet (Google) and Amazon, Kulkarni ranks Meta as the clear leader in demonstrating returns on AI investments so far. Google is seen as the second-best performer, with Amazon in third place. However, he notes that Amazon’s broad range of business areas—such as e-commerce, cloud services, and logistics—offers substantial long-term potential for AI-driven optimization, even if it has been less focused in the near term compared to Meta’s more concentrated AI efforts.
Addressing recent market sell-offs and concerns about AI investment returns, Kulkarni acknowledges the skepticism but maintains confidence in the efficiency gains AI will bring over the next year. He points out that while revenue uplift from AI is not guaranteed yet, Meta is currently the only major company to have clearly demonstrated tangible returns. This positions Meta as a strong buy, especially amid market weakness and uncertainty about AI’s immediate financial impact.
Overall, Kulkarni views Meta’s AI strategy as a once-in-a-lifetime opportunity, comparable to the launch of the iPhone in terms of potential impact. He believes that CEO Mark Zuckerberg’s commitment to AI and immersive technologies reflects a bold vision to disrupt existing markets and create new ones. Investors, including Roth Capital, are willing to be patient with Meta’s stock, anticipating that the company’s long-term AI investments will pay off significantly.