Why Did Analysts Lower Meta Platforms (META) Price Target Despite Nvidia Partnership?

Meta Platforms, Inc. (NASDAQ:META) is one of the 10 Companies That Partnered With Nvidia in 2026. Justin Patterson from KeyBanc reiterated a Buy rating on Meta Platforms, Inc. (NASDAQ:META) while cutting the firm’s price target on the shares on April 9. He reduced the firm’s price target on the stock from $855 to $760 due to rising costs linked to the company’s expanding AI infrastructure. Despite cutting the price target, he still sees an additional 24% upside from the current levels. The price target revision came after Meta Platforms, Inc. Meta Platforms, Inc. (NASDAQ:META) is one of the 10 Companies That Partnered With Nvidia in 2026.(NASDAQ:META) launched its Muse Spark model ahead of its earnings while continuing heavy investment in its Llama 4 ecosystem.

The report highlights that the company is building large-scale data centers and using advanced AI chips to stay competitive. It is putting pressure on short-term profits. Nevertheless, Justin Patterson believes this spending is necessary and supports the company’s long-term position in AI.

Earlier, on April 2, Wells Fargo analyst Ken Gawrelski also lowered the firm’s price target on Meta Platforms, Inc. (NASDAQ:META) from $856 to $765. He also maintained an Overweight rating on the stock ahead of the company’s upcoming quarterly results. Wells Fargo expects revenue to remain strong, with its first-quarter estimate coming in above consensus. Second-quarter guidance is likely to fall within the expected range, assuming there is no further deterioration in macroeconomic conditions. While the firm sees the overall risk/reward as attractive at current levels, it also noted that investors may need to be patient in the short term.

Meta Platforms, Inc. (NASDAQ:META) develops products that allow people to share and connect with their family and friends using PCs, mobile devices, virtual reality (VR) headsets, and AI glasses. Some of its well-known apps include Facebook, Instagram, and WhatsApp. It operates in the Reality Labs (RL) and Family of Apps (FoA) segments.

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 the cheapest AI stock.

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