MetaPlatform is being bought after it released its long-awaited artificial intelligence model this week, according to JPMorgan. The investment bank reiterated its overweight rating on Meta. He also reaffirmed his price target at $825, implying an upside of 34.7% from Wednesday’s closing price. “The launch of Muse Spark should increase confidence in Meta’s expansion trajectory and improve investor sentiment,” JPMorgan analyst Doug Anmuth said in a note to clients on Wednesday. On Wednesday, Meta unveiled its Muse Spark AI model, putting the tech giant in direct competition with the likes of OpenAI’s ChatGPT and Anthropic’s Claude. The product is the first of its kind to come out of Meta’s AI-focused division, Meta Superintelligence Labs, which was founded last year. The new division is part of the company’s multibillion-dollar AI initiative, which has raised eyebrows among some investors. Former Scale AI CEO Alexander Wang is leading the division after Meta poured an eye-watering $14.3 billion into the startup last year to poach its leadership. Meta shares soared as much as 9.5% on Wednesday following Muse Spark’s announcement, before closing up 6.5%. The stock continued that momentum on Thursday, rising more than 3%. META YTD Mountain META These year-to-date gains mark a reversal for technology stocks, which had underperformed in 2026 along with most of their “Magnificent Seven” peers. Meanwhile, the Facebook owner’s stock fell more than 4%, while Alphabet and Amazon posted modest gains. Nvidia fell 1.5%. But JPMorgan believes the meta could continue to rise as investor confidence in AI-focused companies grows. “This initial MSL model represents the first step in what Meta believes is a predictable and efficient scaling trajectory, with each generation validating and building on the last before it grows larger,” Anmuth wrote. “With larger and increasingly capable models in development, Meta will continue on its path to personal superintelligence.” The analyst added that Meta’s investments in big-ticket AI projects should not prevent investors from scooping up stock, adding that the company has historically “remained disciplined” in funding key growth areas. “Meta is focused on two major technology waves: AI and the Metaverse, and we will invest in these key growth opportunities with discipline,” Anmuth wrote. “While we recognize that these (long-term) ambitions are driving increased infrastructure spending, we expect strong revenue growth in 2026. Meta also has a strong track record of benefiting from increased spending.”
