Hedge fund manager Dan Niles is particularly bullish on technology stocks through 2025. Niles, who runs an actively managed fund of 20 to 40 U.S. large-cap stocks at Niles Investment Management, emphasized that the firm has been using artificial intelligence effectively in its internal platform. For example, he explained, the company can use artificial intelligence algorithms to preempt the types of videos and ads that users want to watch. On October 3, Niles said on CNBC's “Squawk Box Asia”: “This has led to better revenue and better profitability for the company… They exceeded the revenue and earnings per share in the June quarter. Revenue. Meta's stock has had a rough few days, but is still up 63% year-to-date as the tech giant posted third-quarter revenue guidance of $38.5 billion to $41 billion. Meta is one of the so-called “big seven” stocks that some investors have been favoring this year. Other stocks on the list include Alphabet, Amazon, Apple, Microsoft, Nvidia and Tesla. Niles noted that Meta “is really the best at using artificial intelligence internally.” The veteran investor describes his investing style as seeking “growth at a reasonable price” while also looking to “see returns from artificial intelligence.” He expects the tech giant to benefit from the upcoming “hotly contested” U.S. presidential election in November, which will “spend a lot of advertising dollars.” “It's a very good thing, you can get it at a price that's well above the market multiple, which is much better than the market growth, and for a company that uses artificial intelligence at its best. That's why, to me That being said, I like what Meta is doing next this year as well because of all these different factors, reasonable valuation, good growth and the play of artificial intelligence,” Niles added. Of the 69 analysts covering the stock, 59 have buy or overweight ratings, eight have hold ratings and two have underweight or sell ratings, according to FactSet data. The stock has an average price target of $588.61, representing an upside potential of 2.8%. “Quality Brand” In addition to Meta, Niles also pays close attention to chip manufacturer Nvidia. The artificial intelligence darling continues to make headlines, with its stock price up nearly 140% for the year. NVDA YTD mountain Year-to-date shares in Nvidia Calling it a “premium name,” Niles said “nobody is even close to not only the chips they provide but the bigger thing which people don't spend enough time on (which) is Software.” He is particularly optimistic about the potential of CUDA (the graphics processing unit programming language developed by Nvidia), which will further enhance its dominance in the artificial intelligence chip market. Nvidia CEO Jensen Huang “has done a great job of getting (CUDA) into universities and so on, and getting everyone, all engineers, used to using it, and as a former engineer myself, once you get used to some Stuff, you just don't use it anymore. “You combine that with the fact that they have the best hardware on the planet and they've been at the top for a long time and I think it's going to be tough for anybody. replace them. FactSet data shows that of the 65 analysts covering the stock, 60 have a buy or overweight rating, while only 5 have a hold rating. The average analyst price target is $149.54, with potential upside of $25 .%8.