Meta Platforms (NASDAQ:META) has fortified its Artificial Intelligence (AI) capabilities with the launch of its next-generation custom-designed chips tailored for AI tasks. The new in-house-designed chip will likely help the social media giant achieve greater efficiency compared to commercially available graphics processing units (GPUs). It will also reduce META’s dependency on Nvidia (NASDAQ:NVDA), granting it more autonomy and flexibility.
Meta CEO Mark Zuckerberg said during the Q4 conference call that AI will be the foundation for many of Meta’s future products. Thus, the company focuses on developing custom-designed chips specifically to meet its workload. It introduced Meta Training and Inference Accelerator (MTIA), its first-generation custom AI inference accelerator, last year. The latest chip should improve the hardware’s performance over its predecessor and enable the company to enhance user experiences across its platforms.
Notably, Meta is investing heavily in AI and integrating technology into its products to boost productivity and improve its apps and advertising businesses.
Is Meta a Buy, Sell, or Hold?
Meta stock is up 143% in one year and has gained more than 47% year-to-date. Despite this notable increase in value, analysts are bullish about Meta’s prospects. It has received 40 Buys, two Holds, and one Sell recommendation for a Strong Buy consensus rating. Analysts’ average price target on META stock is $533.24, implying 2.58% upside potential.
