Social media giant Meta Platforms (META) is making a massive investment in artificial intelligence with plans to spend between $60 billion and $65 billion on building out its AI infrastructure. According to CEO Mark Zuckerberg, this investment will be a key driver of the company’s growth and innovation in the years ahead.
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A major part of this investment will go towards building a new data center, which Zuckerberg says will be equivalent in size to a significant portion of Manhattan. The data center will provide over 1 gigawatt (GW) of computing power this year, and Meta expects to have more than 1.3 million graphics processing units (GPUs) at its disposal by the end of 2025.
In addition, Zuckerberg predicts that 2025 will be a “defining year” for AI and believes that Meta AI will become the leading assistant for over 1 billion people. The company also plans to develop new AI-powered products and services, including an AI engineer that can contribute to its research and development efforts.
Is META Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on META stock based on 40 Buys, three Holds, and one Sell assigned in the past three months, as indicated by the graphic below. After a 64% rally in its share price over the past year, the average META price target of $692.41 per share implies 7.7% upside potential.
