The tech sector has recorded a record-breaking rally as AI hype shows few signs of slowing. Chips from companies like Nvidia (NVDA) are powering the new generative technology, and further driving the tech rally.

Evercore ISI Managing Director Mark Mahaney joins Yahoo Finance to discuss what other tangible generative AI assets end-users can expect to see, and how Meta (META) is leading the charge on the applications front.

Meta's platforms have been optimized with the use of generative AI, Mahaney explains: "If you use Instagram and Facebook, over the years you've seen a pretty dramatic change over the last two years about what your feed looks like. You've got content from across the internet, it's not just friends and family content anymore. And there's a lot of AI that goes into making that content as relevant and focused on you as a person. "

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

BRAD SMITH: Mark, as we are showing the Y-Fi Interactive right now, and thinking about some of the early winners in the generative AI hype phase, and, now, what's turned into a show me story, at least, on the chips front and a few of the other areas of that generative AI trade, where do you believe we'll start to see some of the tangible assets that the end users, the consumers can expect to come their way in the form of applications? And who are some of the biggest beneficiaries there from a stock price action perspective that you're going to be tracking?

MARK MAHANEY: Well, the biggest one I've seen at the app level, if you will, is actually Meta. I think Meta has been using AI to fine tune-- actually, to rebuild its ad tech stack post the Apple privacy changes. But on the user side too, if you use Instagram and Facebook over the years, you've seen a pretty dramatic change, just in the last two years about what your feed looks like.

And that it's got content from across the internet. It's not just friends and family content anymore. And there's a lot of AI that goes into making sure that content is as relevant and as focused on you as a person. And then for advertisers, it's done-- they've had to completely rebuild their ad tech stack. But they did in a way that-- and did it without having to track that the need to track individual users using probabilistic techniques to try to figure out what would be the best way, the best ad to put in front of you that would be most relevant to you and to the market or two.

So I think we've had a wonderful example right in front of us of a company that's been using it to actually get the best growth rates now in internet advertising. And it's scaled. That's what's truly impressive about it. Company talked about investing aggressively in AI. People were dismissive of that. But I think it's paid off for them in spades.

And I think the stock is still reasonably priced.