Bank of America Analyst Reiterates Buy Rating for Meta Amid New AI Model and Chip Partnership
Bank of America analyst Justin Post has reaffirmed a 'Buy' rating on Meta Platforms (ticker: META) with an updated price target of $810, implying about 32% upside from the stock's closing price. The recommendation follows the release of Meta’s new AI model, Muse Spark 1.3, which improves efficiency and performance in coding tasks while maintaining competitive pricing. The analyst highlighted that Meta is accelerating its frontier model development cycle with a one-month gap between updates—a significant pace for such advanced models. Additionally, BofA noted progress on Meta's custom chip strategy through a partnership with Broadcom to deliver three generations of training and inference accelerators by 2027. This collaboration could provide structural cost and performance advantages as AI workloads scale. Meta is also developing an internal consumer AI agent codenamed 'Hatch,' which BofA sees as being well-positioned for success due to the improvements in Muse Spark 1.3’s agentic capabilities.
Topics: Agentic AI AI models Bank of America Meta Muse Spark