Bank of America Maintains Buy Rating on Meta Stock Following Strong Early Traction with Muse AI Assistant
Bank of America has reaffirmed its 'Buy' rating for Meta Platforms (META) stock following the successful early performance of its new consumer AI assistant, Muse. Launched in mid-September, Muse is capable of performing complex tasks such as browsing websites and managing email, distinguishing it from traditional chatbots. The app's rapid adoption—surpassing 2.5 million U.S. downloads within a week—has bolstered investor confidence, contributing to Meta’s stock rising over 36% in the past month. BofA has set an $810 price target for META, representing nearly 9% upside from its reference price of $741.25 as of early September. The firm believes Muse could help reframe investor perceptions around Meta’s AI investments and potentially unlock value through widespread adoption across the company's platforms that reach over 3 billion daily users. However, BofA also highlights a key strategic challenge for Meta: whether to use its substantial AI compute resources internally or lease them externally. While external leasing could generate immediate revenue—potentially up to $40 billion per gigawatt based on industry benchmarks—the company is focused on long-term value through consumer agents and advertising enhancements.
Topics: AI Bank of America Meta Muse AI assistant