Social media giant Meta Platforms (NASDAQ:META) is investing heavily in Artificial Intelligence and, according to CNBC, is developing a system that will power Facebook’s entire video recommendation system, including Reels and traditional long-form videos. Tom Alison, Head of Facebook, spoke about this AI system at a tech conference in San Francisco.
Pick the best stocks and maximize your portfolio:
- Discover top-rated stocks from highly ranked analysts with Analyst Top Stocks!
- Easily identify outperforming stocks and invest smarter with Top Smart Score Stocks
Elaborating further, Alison stated that this system is part of the social media giant’s technology roadmap to 2026. Alison added that so far, META has been using a separate recommendation model for each of its products, including Reels, Groups, and the Facebook feed.
As part of Meta’s Phase-1 tech roadmap, the company has been transitioning to using Nvidia’s (NASDAQ:NVDA) GPUs and building a “new model architecture.” The company found that this new architecture boosted Reels watch time in the range of 8% to 10%, proving its efficiency in learning from data.
Meta has now progressed to Phase 3 of its tech roadmap and plans to use this AI video recommendation system for more engaging and relevant content. Furthermore, the company intends to leverage its Graphics Processing Unit (GPU) stockpile for broader generative AI projects, like integrating advanced chatting tools into its core Feed and Groups. This would enable users to interact with digital assistants for more personalized experiences.
Is Meta a Buy, Sell, or Hold?
Analysts remain bullish about META stock with a Strong Buy consensus rating based on 40 Buys, two Holds, and one Sell. Over the past year, META has skyrocketed by more than 100%, and the average META price target of $528.80 implies an upside potential of 6.6% at current levels.
