Investors who recognized the potential of the artificial intelligence (AI) sector, particularly in companies like Nvidia, are reaping significant rewards. However, opportunities remain for latecomers, especially with stocks like Microsoft (MSFT) and Meta Platforms (META) poised for long-term growth. Microsoft has seen its shares drop 19% over the past six months, yet its fiscal Q3 2026 revenue surged 18% year-over-year, driven by a 40% increase in Azure sales. The company’s AI business is now generating over $37 billion annually, showcasing its potential despite current market apprehensions.

Meta Platforms, despite a recent dip in user growth, reported a robust 33% revenue increase in its latest quarter, bolstered by AI-driven engagement improvements. The company’s investments in AI are enhancing its advertising effectiveness, and with a forward earnings multiple of 20.5x, it appears undervalued relative to its peers.

For market professionals, these stocks represent compelling buying opportunities. Both companies are well-positioned to leverage AI for sustained revenue growth, making them attractive options for long-term investment strategies.

Source: fool.com