If you’re looking for relative value in tech after the meteoric rise of the Nasdaq 100 and the Magnificent Seven in the first half, perhaps the social media scene is worth checking out this July. Undoubtedly, the artificial intelligence revolution will change many industries in profound ways that are difficult for some to fathom.

When it comes to social media, AI has already begun to make an impact. And it’s not just AI behind the scenes, either, with social-media titan Meta Platforms (NASDAQ:META) showing off AI personas to users. Such consumer-facing AIs are intriguing, even entertaining, but they’re likely just a hint of what’s to come from the AI-first social media and metaverse company.

As Meta’s AI, or LLaMA, becomes more capable with every additional billion spent on advancing the technology, rival social-media firms should seek to borrow from Mark Zuckerberg’s growth playbook and look to AI to boost engagement and enhance the ad business.

Reddit (RDDT)

Reddit (NYSE:RDDT) looks to be a huge IPO success story, with the stock now up around 60% from its opening day close of $46 per share. Undoubtedly, Tuesday’s 10% pop powered RDDT stock to a new all-time high of $73 and change.

Indeed, Reddit’s traffic has been soaring of late, up 39% for May, according to a report issued by Similarweb. And, no, the boom isn’t about the latest meme stock frenzy surrounding Roaring Kitty and his latest bets.

Reddit has been used on Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google search in recent months. In an age where AI content is scattered throughout the web, many people likely seek a human perspective.

And with Reddit, they’re getting just that. It’s no wonder why Google is becoming a stepping stone for many seeking an answer to a question, minus the risk of getting an AI-generated hallucination.

With a mere $12.04 billion market cap, RDDT stock still has a high growth ceiling. And in the age of AI, perhaps there’s more room for the underrated social-media play to fly.

Meta Platforms (META)

Meta Platforms is in the Magnificent Seven for a reason: it’s a growth company that’s comfortable stepping outside of its circle of competence into new frontiers — think AI and the metaverse.

Of course, jumping into an unproven, emerging market can be risky. But so, too, can being complacent and not taking any risks. As a proven capital allocator, investors should trust Zuckerberg as he positions the firm to take only smart, strategic risks.

In any case, Meta doesn’t seem to have lost its competitive spirit, as it shoots to become even more magnificent than its six mega-cap tech peers. Though the company has been subject to regulatory scrutiny lately, specifically from the European Union, such news is mostly noise.

At the end of the day, Meta is all about going big or going home. When it comes to AI, Meta is not afraid to open up the checkbook to spend on efforts to advance its positioning in the AI race.

Given what Meta has to gain by swinging for the fences, META stock is a relative AI stock bargain at 29.3 times trailing price-to-earnings.

Tencent Holdings (TCEHY)

Tencent Holdings (OTCMKTS:TCEHY) is a Chinese internet titan behind the popular social media app Weixin, also known as WeChat, and various video-game studios. On the surface, Weixen seems like just another rival of WhatsApp for Chinese users.

While Weixen is used for keeping up with friends via messaging, the app is also used for posting Moments, similarly to a Facebook feed) paying for things and even running mini-programs. It’s the ultimate super app, with more than 1.3 billion users. It also provides a common interface, regardless of the smartphone or mobile operating system being used.

At 29.9 times trailing P/E, TCHEY stock looks too cheap, especially given its monopolistic positioning with Chinese users and the ability to upsell them with new services.

On the date of publication, Joey Frenette held shares of Alphabet (Class C). The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.