Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks Making Waves on Wall Street. On July 31, Morgan Stanley analyst Brian Nowak raised the price target on the stock to $850.00 (from $750.00) while maintaining an “Overweight” rating.
According to the firm, improvements in GPU-enabled algorithmic are helping drive better-than-expected engagement and monetization metrics. This is, it believes, evident in Meta’s second-quarter results and third-quarter guidance.
“Super Core and Superintelligence… and More to Come: META’s 2Q results and 3Q guide speak to how continued GPU-enabled algorithmic improvements and advances are driving even better-than-expected lifts to engagement and monetization… as our ‘25/’26 revenue estimates rise by ~3%/4%. ’25/’26 EPS rises by 5%/9%.
The firm further highlighted how Meta has been increasing investments in core operations and long-term projects. It’s improving core business can fund these initiatives, and boost profitability at the same time.
“META’s investment is stepping up (in core and long-term projects)… but the continuously improving core can fund this… while also driving higher profitability.”
While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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