Meta's large user base and AI-enhanced advertising support long-term growth potential, despite risks from high capex and falling operating margins.

Today , I will talk about AMD, Broadcom, Amazon, Meta, and Nvidia. Amazon, Microsoft, Google and Meta are spending billions to build data centers, buy chips and secure electricity.

We can see recently how high Meta's stock has risen, and Meta relies mainly on advertising revenue.

Now let's move on to our next stock, "Meta". Meta is a completely different investment in artificial intelligence than the semiconductor companies I've talked about so much on my channel.

It doesn't need to sell you a graphics processing unit or rent you a data center to benefit from artificial intelligence. It already possesses something incredibly valuable: the attention of users.

Facebook, Instagram, WhatsApp and Messenger together reach nearly 3.6 billion people every day.

When you have this kind of reach, even relatively small improvements in profitability can generate billions of dollars in additional revenue. I think of Meta from the perspective of the attention-grabbing war.

Every company wants to get more customers, and these customers spend a large part of their time on social media.

As you saw, "Bloom" is not "Bloom Energy," but a beverage company, as you know. It's like a fizzy drink . I don't drink it, but I saw that they have $500 million in revenue and they run a lot of advertisements.

Therefore, every company that truly wants to grow, especially large companies, relies on meta ads. Meta uses artificial intelligence to improve the efficiency of its advertising products.

Its algorithms can suggest more relevant content, identify potential customers, and help advertisers improve their campaigns.

The numbers already show just how powerful this work is for Meta. Naturally, all companies on Meta that benefit from advertising will continue to advertise, and even expand upon it.

What I mean by expansion is that they will spend more on advertising in the future.

So, let's take a look at Meta's business. In the second quarter of 2026, Meta generated revenues of $60.8 billion, a 28 % year-over-year increase.

Ad impressions increased by 14%, while the average ad price increased by 12%. Think about this literally. Meta not only displays more ads, but also generates more revenue from each ad .

When these two things happen together, you can achieve significant revenue growth without really needing to increase your user base at the same rate.

Now, Meta is also trying to build a business that goes beyond advertising. Its latest AI products, including news, offer opportunities in the areas of personal assistance, business automation, and shopping.

Here's why this is interesting. Imagine a consumer asking a smart assistant to find a specific product, compare different options, and complete the purchase. Meta already has billions of potential customers who use its apps.

If it can successfully integrate shopping and other transactions into its AI products , it could develop new revenue streams that go beyond traditional advertising.

But it's still too early . The fact that millions of people have tried an AI product does not automatically mean that these people will become paying customers. Meta also faces significant competition.

Now, there is another major risk as well. Meta expects spending between 130 billion and 145 billion on capital expenditures in 2026. That is a very large amount of money.

In the second quarter, the operating margin fell to 31% from 43% a year earlier, reflecting higher expenses. So, the question is not whether Meta is capable of generating revenue, but whether all the additional AI spending will produce sufficient incremental revenue and operating profit to justify the investment.

I will monitor the growth of the advertisements. The adoption of AI products and operating margins are also important to monitor closely, but the main driver of business is, of course, advertising.

My five stocks: AMD, Broadcom, Amazon, Meta, and Nvidia. All five companies are in a position to leverage artificial intelligence in different ways, and I believe they have great long-term potential.

I will continue to buy when attractive opportunities arise .