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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. (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.

READ NEXT: 10 Stocks That Will Skyrocket When Oil Prices Fall and  8 Best American Stocks to Buy for the Next 5 Years.

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The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

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