Morgan Stanley Boosts Meta Target to $850—Here’s Why

Meta Platforms, Inc. (NASDAQ:META) is one of the AI Stocks Making Waves on Wall Street.  On July 31, Morgan Stanley analyst Brian Nowak raised the price target on the stock to $850.00 (from $750.00) while maintaining an “Overweight” rating.

According to the firm, improvements in GPU-enabled algorithmic are helping drive better-than-expected engagement and monetization metrics. This is, it believes, evident in Meta’s second-quarter results and third-quarter guidance.

“Super Core and Superintelligence… and More to Come: META’s 2Q results and 3Q guide speak to how continued GPU-enabled algorithmic improvements and advances are driving even better-than-expected lifts to engagement and monetization… as our ‘25/’26 revenue estimates rise by ~3%/4%. ’25/’26 EPS rises by 5%/9%.

Morgan Stanley Boosts Meta Target to $850—Here’s Why

The firm further highlighted how Meta has been increasing investments in core operations and long-term projects. It’s improving core business can fund these initiatives, and boost profitability at the same time.

“META’s investment is stepping up (in core and long-term projects)… but the continuously improving core can fund this… while also driving higher profitability.”

While we acknowledge the risk and potential of META as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than META and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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