Like many investors, I'm enthralled by the opportunities unleashed by artificial intelligence (AI). I agree with predictions that AI could be as big (or bigger) than the internet.

Which AI stocks are likely to be the biggest winners? Different people will have different answers to the question. Here's my pick for the best mega-cap AI stock to buy right now.

One of the cheapest mega-cap AI stocks around

I like many of the mega-cap leaders in AI, including most of the so-called "Magnificent Seven" stocks. However, valuation is an important factor to me. Many AI stocks with market caps of $200 billion or more trade at a lofty premium. But not Meta Platforms (META -0.28%).

Meta's attractive valuation is a key reason I think it's the best mega-cap AI stock to buy right now. The company's shares trade at 22 times forward earnings, lower than most of its peers. Its price-to-earnings-to-growth (PEG) ratio, based on analysts' five-year growth projections, is only 1.02.

Some investors bailed on Meta after the company's first-quarter update. Shares are down roughly 17% primarily because of concerns about Meta's capital expenditures increasing as the company focuses on current money-losing AI and metaverse initiatives.

This sell-off was way overdone, in my view. Meta delivered strong revenue and earnings growth in Q1. I think the company's investments in AI and the metaverse will deliver strong returns over time. Meta CEO Mark Zuckerberg believes that'll be the case. He provided a reminder in the Q1 earnings call that the company's history shows that spending money to scale new technology "has been a very good long-term investment for us and for investors who have stuck with us."

How Meta can win with AI

AI is already making a difference in Meta's operations. Zuckerberg noted in the Q1 call that around 30% of Facebook posts are delivered by the company's AI recommendation system, double the level from two years ago. Over 50% of the content on Instagram is recommended by AI. The more content appeals to users, the more attractive Meta's social media platforms will be to advertisers.

Speaking of advertisers, Meta is using AI to help them improve their return on investment. Revenue flowing through two of the company's AI-powered tools, Advantage+ Shopping and Advantage+ App Campaigns, has increased more than 100% since last year.

Meta recently launched its smart glasses with AI vision integration. Customers can ask the Meta AI assistant questions about things they're viewing. Zuckerberg thinks there's a "meaningful market for fashionable AI glasses without a display."

He sees multiple ways for Meta to profit in a huge way from AI in addition to selling smart glasses. Placing ads or paid content in AI interactions is one possibility. Charging for access to large-scale AI models is another.

Perhaps the biggest near-term opportunity is using AI in business messaging. Meta is already testing functionality where businesses use AI assistants that interact with customers in chats. The feedback so far from businesses and consumers has been positive, according to Zuckerberg.

Timing is everything

Will Meta always be my favorite mega-cap AI stock? Almost certainly not. New AI developments are happening at a breakneck speed. Meta's valuation could increase so much that it's no longer attractive. Other AI stocks could fall and create great buying opportunities.

A year from now, I might like Alphabet, Amazon, Nvidia, or another big AI leader more than I do Meta. For now, though, Meta ranks at the top of my list.