JPMorgan Upgrades Meta's Rating — AI Agents Named as a New Growth Opportunity for the Company

JPMorgan upgraded Meta Platforms' stock rating from "Neutral" to "Overweight." According to the bank's assessment, the company's focus on advanced artificial intelligence models and AI agents creates new growth opportunities for Meta beyond its advertising-dependent business.

JPMorgan analyst Doug Anmuth raised Meta's stock price target from $640 to $820. According to his assessment, the company has already begun developing and deploying AI-based products, including the Muse AI agent and the Meta Model API.

Meta's stock has risen approximately 20% from its recent lows, though its price is nearly unchanged compared to the start of the year. Over the same period, the S&P 500 index has gained approximately 12%.

According to Anmuth, Meta's "superintelligence lab" has effectively achieved its goal, reaching an advanced level of AI model development in about a year. He believes the pace of new model releases has accelerated, with one of the recent results of this process being Muse Spark 1.3, which the analyst says is competing with Claude and GPT models.

The analyst also expects the release of a new model called Watermelon, which he believes could create additional opportunities in consumer products, user engagement, advertising, and improving the company's internal efficiency.

Anmuth particularly noted the early success of the Muse AI agent. According to him, the app even reached third place in the US App Store rankings the day after its release.

He believes monetizing the AI agent will not be Meta's main priority in the short term, though it creates future revenue opportunities from both commissions and subscriptions. According to Anmuth's estimate, the potential scale of the AI agent market could reach tens of trillions of dollars.

In addition, the JPMorgan analyst also focused on Meta's growing capital expenditures. He forecasts that the company's capital expenditures will reach $243 billion in 2027 and $284 billion in 2028 — both figures above current market consensus.