• BofA reaffirms Buy rating on Meta with $835 price target, citing AI momentum.
  • Stronger AI models and new monetization opportunities could drive upside.
  • Meta’s stock still trades below its recent peak multiple, leaving room for growth.

AI Tailwinds Propel Bull Case

Bank of America has reiterated its Buy rating on Meta Platforms Inc., setting a price target of $835 as the social media giant’s artificial intelligence initiatives gain steam. The firm sees further upside from stronger AI models, progress on Meta’s custom MTIA chip, and new monetization avenues, including enterprise AI offerings. “AI-driven ad growth remains a key catalyst,” wrote BofA analysts in a note, adding that better-than-expected Q2 results could reinforce the narrative.

Meta’s shares have lagged their recent peak multiple, providing room for expansion if AI infrastructure investments pay off. The company has reorganized around AI units, such as its Superintelligence Labs, and is developing models like Muse Spark. “We believe Meta is well-positioned to monetize its AI advancements,” the analysts said, though they cautioned that elevated AI-related operating expenses could pressure near-term margins.

Monetization and Valuation

BofA argues that Meta’s valuation remains attractive relative to peers, especially given the potential for AI to create durable, less macro-sensitive revenue streams. Enterprise AI solutions could broaden Meta’s revenue base beyond advertising, reducing exposure to economic cycles. “Greater clarity on AI infrastructure value may support a higher valuation,” the note stated.

The firm also highlighted Meta’s progress on its MTIA chip, which could reduce reliance on external suppliers and improve efficiency. “Chip development is a positive signal for long-term cost control,” the analysts said.

Risks to Watch

Investors should monitor the cadence of AI-related operating expenses and gross margins, as well as adoption rates for enterprise AI products. Regulatory scrutiny of AI and data usage in major markets remains a backdrop, though no policy shifts are currently seen as altering Meta’s path.

— This article was updated to reflect BofA’s price target as of mid-2026.