Bank of America Maintains Buy Rating on Meta Stock Following Strong Early Reception of AI Assistant 'Muse'
Bank of America has reaffirmed its Buy rating for Meta Platforms (META) stock following the successful early reception of Muse, a new consumer-focused AI assistant launched by the company. The app allows users to perform complex tasks such as browsing websites and managing emails with minimal input, signaling progress in Meta's broader artificial intelligence strategy. Muse has already achieved significant user traction within its first weeks on the market, surpassing 2.5 million U.S. downloads and reaching over half a million daily active users by mid-September. This momentum is helping shift investor sentiment toward viewing Meta’s AI investments as potentially transformative rather than merely cost-heavy. The bank raised an $810 price target for META stock, representing potential upside of around 9%. However, it also highlighted the strategic dilemma facing Meta: whether to use its growing compute power internally or lease it externally. The firm estimates external leasing could generate up to $40 billion per gigawatt based on industry benchmarks.
Topics: AI Bank of America investment ratings Meta Muse AI assistant