JPMorgan saw a signal for investors in Meta's new AI model. The bank advises buying

The new AI model that Meta Platforms unveiled on April 8 reinforced JPMorgan's bullish stance on the company. The bank believes that this release will help restore investor confidence in Meta's AI strategy and expects its quotes to grow by more than 30%.

The release of Meta's new AI called Muse Spark should support investor sentiment and boost confidence in the scalability of the company's business, according to JPMorgan analyst Doug Anmuth, as quoted by CNBC.

Muse Spark was previously known by the codename Avocado. This is the first product of the Meta Superintelligence Labs AI division, which Mark Zuckerberg assembled almost by hand from top specialists from across the market to develop a superintelligence capable of surpassing humans. The new model will be used in the Meta AI chatbot, as well as to improve the app ecosystem - from Instagram and Facebook to WhatsApp, the company said.

The launch puts the company in direct competition with OpenAI's ChatGPT and Anthropic's Claude and shows that Meta's multi-billion-dollar spending on AI, which has alarmed shareholders, is starting to turn into tangible products, CNBC notes.

According to JPMorgan, the new AI is just the first step in a sequential strategy where each generation will enhance the previous one. Larger and more powerful models are already in development, the bank points out. That said, high AI infrastructure costs should not deter investors from buying the company's shares, Anmuth says, because Meta remains disciplined in its investments and is capable of delivering significant revenue growth in 2026.

JPMorgan reiterated a buy recommendation on the company's stock and a target price of $825, which implies a potential upside of 31% from the last close.

Muse Spark has earned other upbeat comments from Wall Street analysts.

- "The release of Muse Spark provides more clarity on Meta Superintelligence Labs' product strategy and, in our view, removes a key pressure factor on the stock related to expectations of a delay in its launch," Citi said, its note quoted by Business Insider.

- Bank of America called the release "the first major step" in the rollout of Meta's model lineup, and BofA analysts said the company could follow a similar path to Alphabet, with faster-than-expected progress in AI leading to improved investor sentiment.

- Mizuho sees the earlier-than-expected model launch as a positive signal for Meta's position in the AI race. Analysts predict that increased user engagement thanks to the new AI could open up significant monetization potential, but they note that it is important for Meta to explain in more detail exactly how it plans to turn its models into products beyond the Meta AI chatbot.

Although the company claims that Muse Spark is competitive compared to its peers, Meta is well overdue in this race, CNBC reminds us. OpenAI and Anthropic are already collectively valued at more than $1 trillion thanks to the popularity of their models and services, while Google has built Gemini into its entire ecosystem of applications and products, in parallel selling access to these models through its cloud division.To succeed, Meta's AI technologies must not only be comparable in quality, but also create new business opportunities, the channel points out.

In the two days following the release, Meta's shares rose 10%. This is a significant reversal for the technology company, which lagged behind most of its "Magnificent Seven" peers in 2026. Since the beginning of the year, Meta's quotes have fallen by 4.8%, while Alphabet and Amazon, for example, showed a slight increase, and Nvidia lost about 1.5% of its value.

Wall Street's consensus target implies a potential upside of 29% for Meta securities by the last close.

This article was AI-translated and verified by a human editor