Meta Platforms Inc. (NASDAQ:META) is one of the best big tech stocks to invest in now. On October 1, Meta Platforms announced a partnership with chip technology provider Arm Holdings (NASDAQ:ARM) to power the systems driving personalization across its applications. This is part of a broader trend of companies upgrading the chip technology underpinning their services.

Meta will use Arm-based data center platforms to power its AI ranking and recommendation systems, which are crucial for discovery and personalization within its apps. Arm provides the chip architecture blueprint that defines what a CPU can do and which applications it can run.

The companies stated that the Arm-based approach is expected to deliver higher performance and lower power use compared to x86 systems. While Arm-based chips already dominate the smartphone market, they are rapidly gaining traction in the personal computer and server CPU markets.

Meta Platforms Inc. (NASDAQ:META) develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality and mixed reality headsets, AR, and wearables worldwide. It has two segments: Family of Apps/FoA and Reality Labs/RL.

Arm Holdings (NASDAQ:ARM) architects, develops, and licenses central processing unit products and related technologies for semiconductor companies and original equipment manufacturers.

While we acknowledge the potential of ARM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.