Key Stats for Meta Platforms Stock
- Price change for Meta Platforms stock: 6%
- $META Stock Price as of Jul. 10: $669
- 52-Week High: $796
- $META Stock Price Target: $827
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What Happened?
Meta (META) stock had its best week since early 2024, jumping more than 12% as investors got more excited about CEO Mark Zuckerberg’s AI strategy.
A big part of that excitement centers on a custom AI chip codenamed “Iris,” which Meta plans to start manufacturing in September, according to an internal memo reviewed by Reuters.
Iris is part of a larger project called Meta Training and Inference Accelerators, or MTIA. Meta designs these chips in-house and is working with Broadcom on chip design and Taiwan Semiconductor Manufacturing to actually build them.
The goal is straightforward: reduce reliance on external chip suppliers like Nvidia and AMD while cutting Meta’s massive computing costs.
Testing on the Iris chip took only six weeks and found no major issues, a notable sign of progress for an in-house chip effort that has struggled since it launched more than five years ago.
Meta plans to release a new chip roughly every six months through 2027, a much faster pace than the typical yearly cycle most chipmakers follow. This chip news arrives alongside a busy stretch of AI announcements from Meta.
Just months after debuting its first proprietary AI model, Muse Spark, the company released Muse Image this week, an AI tool for generating images aimed at drawing in creators and advertisers to its new subscription offerings.
Meta also unveiled Muse Spark 1.1, built specifically for coding and agentic AI tasks, putting it in more direct competition with OpenAI, Anthropic, and Google.
Bank of America analyst Justin Post weighed in on the chip news, writing that Meta “may have engineered significant cost savings to get capacity cost per MW well below our and Street expectations.”
Meanwhile, BNP Paribas analyst Nick Jomes suggested Meta could raise its 2026 capital spending guidance again when it reports Q2 earnings, potentially to a range of $135 billion to $155 billion.
Jomes said Meta looks well positioned to support that spending through AI monetization, advertising gains, subscription revenue, and even a possible cloud computing business.
Not everything is going smoothly for Meta, though. The EU concluded in a preliminary report that Instagram and Facebook’s “addictive” design features, like infinite scroll and autoplay, violate the bloc’s Digital Services Act.
Meta could face a fine of up to 6% of its total annual turnover if the findings are confirmed.
A Meta spokesperson said the company disagrees with the findings and pointed to its Teen Accounts feature as evidence of its safety efforts.
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What the Market Is Telling Us About Meta Platforms Stock
Investors seem to be responding well to Meta finally laying out a clearer, more concrete plan for its enormous AI spending.
Back in April, Meta stock fell 7% after the company raised its capex guidance without much detail on how that spending would translate into new revenue streams.
This week’s chip progress and new AI model launches appear to be filling in that gap, giving Wall Street a better sense of where the payoff might come from, whether through ads, subscriptions, or a future cloud business.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
