Artificial intelligence (AI) isn't new, but novel applications of the technology have become extremely popular in the past few years. Demand for AI-based services is already high, but according to some experts, we're arguably still in the early innings of this revolution.

Though many corporations are cashing in on this and are attractive from an investment viewpoint, one of my favorites is Meta Platforms (META -1.39%), the parent company of Facebook. Here are three reasons it is a top AI stock to buy.

1. 3.4 billion and counting

Meta Platforms' AI initiatives include Meta AI, a chatbot the company first released in late 2023. Almost two years later, Meta AI boasts nearly 1 billion monthly active users. How was the tech giant able to scale this service so fast? The answer is that Meta Platforms already has a vast ecosystem of users across its websites and apps. As of the first quarter, Meta Platforms had 3.4 billion daily active users.

Image source: Getty Images.

It's hard to overstate how crucial this advantage is for Meta Platforms. Whereas similar services from other companies might have to rely on other -- sometimes expensive -- methods to attract users, Meta Platforms can depend on its brand name and existing ecosystem. While Meta AI hardly generates any revenue for the company, scaling this opportunity first and then working on monetization is exactly how Meta Platforms has operated with other platforms, including WhatsApp. Meta Platforms will, eventually, find ways to monetize Meta AI.

In the meantime, the technology is impacting its results in other ways. Thanks to AI-powered recommendations on Instagram and Facebook, it is driving greater engagement on these websites, leading to stronger ad revenue. But once again, Meta Platforms can achieve these results mainly because of its already massive existing user base. The company's ecosystem will remain a significant strength in the AI race.

2. Doubling down on AI

Being a leader in deploying various AI applications is not exactly cheap. The technology requires significant computing power. Increased demand for the infrastructure necessary to train and run AI applications is what's driving the immense success of a company like Nvidia, whose data center revenue has skyrocketed in the past few years. Meta Platforms is investing heavily in ensuring it isn't left behind. Management has explicitly stated its intentions to pour hundreds of billions of dollars into AI infrastructure-related expenses over the long term.

In the first quarter, the company's cost of revenue jumped by 14% year over year, primarily due to higher infrastructure expenses. Thankfully, Meta Platforms can afford it. The company's revenue increased even faster -- by 16% year over year to $42.3 billion. Meta Platforms' earnings per share jumped by 37% year over year to $6.43. Its free cash flow for the period came in at $10.33 billion, although that declined from the $12.5 billion it reported in the first quarter of 2024, likely partly because of these investments.

These should pay off eventually, though, so it's worth it for the company.

3. Other growth opportunities

Meta Platforms' work in AI also includes hardware devices such as glasses. CEO Mark Zuckerberg is predicting that AI glasses will start becoming the norm within five to 10 years. But Meta Platforms isn't just an AI stock. Within its core business, advertising should remain its most significant growth driver for the foreseeable future. The digital ad space is still on an upward trajectory, which is great for the company. Its giant ecosystem makes it an ideal target for businesses.

Elsewhere, the company is ramping up business messaging on WhatsApp. Further, it is still working on the metaverse. Together with AI, those opportunities make Meta Platforms' prospects highly attractive.

Buy and forget

Meta Platforms' results could suffer due to the macro environment. In the first quarter, the company reported that Asian-based e-commerce businesses decreased ad spending due to President Donald Trump's decision to end a legal loophole that allowed tax-free shipments of lower-cost packages from China into the U.S. The company could also see a decrease in ad revenue if the economic situation worsens significantly. It has happened before.

Those are all potential risks to keep an eye on. However, Meta Platforms' long-term prospects are strong despite these potential headwinds. The company's vast ecosystem and multiple growth paths should more than make up for an occasionally weak economy. The stock is well-positioned to deliver market-beating returns thanks to its work in AI and other industries.