Meta Platforms' $10 Billion AI Strategy for 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: Fool
- AI Investment Scale: Meta invested over $10 billion in AI infrastructure in 2025, and despite margin pressures, investors accepted this strategy, indicating confidence in future growth potential.
- Llama Open Source Advantage: By positioning Llama as open-source infrastructure, Meta attracts developers and enterprises into its ecosystem while pushing deployment costs outward, potentially leading to faster innovation and product improvements in the future.
- Advertising Business Potential: The application of AI is expected to significantly enhance Meta's advertising business, with better targeting and more effective creative tools contributing to a 26% revenue growth in the first nine months of 2025, with prospects for accelerated revenue growth ahead.
- Execution Risk Warning: Despite the optimistic outlook, Meta faces risks including prolonged high AI spending and insufficient developer adoption of open-source models, which could undermine market confidence in its profitability.
Analyst Views on META
Wall Street analysts forecast META stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for META is 832.06 USD with a low forecast of 655.15 USD and a high forecast of 1117 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
43 Analyst Rating
36 Buy
6 Hold
1 Sell
Strong Buy
Current: 620.800
Low
655.15
Averages
832.06
High
1117
Current: 620.800
Low
655.15
Averages
832.06
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
