Bank of America Reiterates Buy Rating on Meta Amid AI Strategy Developments
Meta (META) announced two key developments in its artificial intelligence strategy that are reshaping investor perceptions: the deployment of custom-built AI chips and a new subscription service called Meta One. The company plans to launch third- and fourth-generation Arke and Astrid chips, developed with Broadcom for AI inference tasks, starting in 2027. These chips aim to reduce costs by up to 40% compared to alternatives like those from Nvidia. In addition, Meta introduced a paid subscription model across its platforms through Meta One, offering users access to advanced features and tools. The service has already attracted over 15 million subscriptions or trials in its early stages. Bank of America reiterated its Buy rating on the stock with an unchanged $810 price target, implying about 20% upside from recent levels. The developments signal Meta's long-term strategy to monetize AI and reduce infrastructure costs through custom silicon—a path similar to Google’s TPU program—while also testing user willingness to pay for premium features.
Tickers: $AVGO $BAC $META $NVDA