AI Drives JPMorgan to Raise Meta Stock Target
JPMorgan has upgraded Meta Platforms stock from "Neutral" to "Overweight" and raised its price target from $640 to $820, driven by the company's expansion into artificial intelligence technologies and advanced AI models.
The bank believes that products such as the "Muse" agent and the availability of the Meta Model API could unlock new growth avenues for Meta beyond its traditional advertising business. It also noted that the company's advanced AI lab has made rapid progress, launching models capable of competing with leading existing models.
The analyst added that the upcoming "Watermelon" model could bolster Meta's prospects in consumer products and advertising while enhancing operational efficiency. Additionally, the Muse agent has made a strong debut on the US App Store, even though generating revenue from it is not an immediate priority.
Conversely, JPMorgan anticipates that Meta's capital expenditure will continue to rise in the coming years, with projected spending of $243 billion in 2027 and $284 billion in 2028—levels that exceed market expectations.
