Meta Plans $145 Billion AI Spend as Analysts Raise Targets

Financial firms JPMorgan, KeyBanc, and Cantor Fitzgerald have raised their price targets for Meta Platforms to $920, $900, and $860, respectively. Analysts cite the strong momentum of the Muse AI assistant and the emergence of new revenue streams as primary drivers for the revisions. JPMorgan analyst Doug Anmuth noted that Muse, which integrated with over 2,000 applications including Walmart and Sephora within two weeks of launch, could become the most widely used consumer AI application since ChatGPT.

To support these ambitions, Meta plans to spend up to $145 billion in capital expenditures in 2026, a 101% increase over 2025 spending. This investment focuses on AI infrastructure, model training, and the development of personal agents and superintelligence. Total expenses for the year are projected to reach $169 billion, driven by infrastructure costs and AI talent recruitment.

Despite missing consensus on diluted EPS for Q2 FY2026 due to legal and severance costs, Meta reported revenue of $60.80 billion, a 27.96% year-over-year increase. Mark Zuckerberg stated that the company's advertising business is growing faster than any other reported ad business. Meta shares surged approximately 30% in September, marking the company's strongest monthly performance since July 2013.