META stock AI investments are paying off, with analysts raising price targets and investors rallying behind Zuckerberg’s bold artificial intelligence strategy.
META Stock AI Surge: A Game-Changer for Investors
Meta Platforms (NASDAQ:META) is no longer just a social media company—it’s fast becoming a leading force in artificial intelligence. Mark Zuckerberg’s aggressive pivot toward AI is not just hype. It’s transforming Meta’s financials and boosting META stock AI valuation, with shares soaring 45% since hitting a low in April 2025.
The turning point? A $14.3 billion investment in Scale AI, a major data-labeling firm, whose CEO has now joined Meta’s artificial general intelligence (AGI) team. The move underscores Meta’s commitment to owning the next generation of AI infrastructure.
This comes as the company raised its capital expenditure forecast for 2025 to as high as $72 billion, with a significant chunk earmarked for AI development and data center expansion.
Meta AI Rollouts Are Driving Engagement
AI isn’t just a back-end buzzword for Meta. In April 2025, the company rolled out Meta AI, an assistant chatbot integrated across Facebook, Instagram, WhatsApp, and Messenger. With 1 billion monthly active users already, this tool is central to Meta’s mission of embedding AI into everyday user experiences.
Even hardware is getting the AI treatment. Meta’s Ray-Ban smart glasses, powered by AI features, are gaining traction, especially among younger demographics. And the company just announced plans to roll out in-app ads on WhatsApp—potentially unlocking billions in new revenue.
META stock AI sentiment surged on that news, with shares jumping 2.8% on June 16.
Q1 2025 Earnings: META Stock AI Strategy Proves Profitable
Meta’s first-quarter results further validate its AI-centric approach. On April 30, the company posted:
- Revenue: $42.3 billion (up 16% YoY, beating expectations)
- EPS: $6.43 (a 37% jump, beating estimates by over 23%)
The ad business continues to shine, with 5% more impressions and a 10% increase in ad prices compared to last year. Meanwhile, user growth remains robust, with Meta’s app family reaching 3.4 billion daily active users.
CEO Zuckerberg emphasized that Meta AI is a “breakthrough moment” for the company, citing both user engagement and monetization opportunities as key drivers of long-term growth.
META Stock AI Spending: Big Bets, Bigger Payoffs?
Spending is ramping up to support these initiatives. Meta boosted its 2025 capex outlook from a maximum of $65 billion to $72 billion. Most of this will be funneled into scaling AI infrastructure, especially data centers and AI compute resources to support large language models like Llama 4.
While there has been mixed feedback on Llama 4’s competitiveness, Wall Street remains optimistic that Meta’s large-scale AI bets will lead to breakthroughs.
Wall Street Is Bullish on META Stock AI Potential
Analysts are lining up behind Meta’s AI strategy:
- JPMorgan: Price target lifted from $675 to $735, maintaining “Overweight”
- Wells Fargo: Reiterated “Overweight” with a $664 target, citing strong WhatsApp monetization potential
- Oppenheimer: Raised price target to $775 from $665, noting a resilient ad market and the significance of the Scale AI acquisition
Out of 53 analysts covering META stock, 44 have issued a “Strong Buy” rating. The average target sits at $704.57, while the high-end forecast reaches $935—a potential 34% upside.
Final Thoughts: META Stock AI Growth Is Just Beginning
Meta Platforms is reshaping its identity through artificial intelligence. From billion-dollar investments to new revenue streams, the company is making bold moves that are resonating with investors and analysts alike.
For investors seeking long-term growth in the AI space, META stock offers a compelling blend of innovation, scale, and execution. As Meta doubles down on AI, the stock’s momentum suggests that Wall Street believes this transformation is only just beginning.
Featured Image: Freepik © macrovector
