Mon Oct 06 13:40:00 UTC 2025: ## Meta’s AI Investments: Analysts Weigh In on Potential and Pitfalls

**Wall Street is buzzing about Meta Platforms Inc (NASDAQ:META) and its aggressive push into artificial intelligence, with some analysts pointing to the company’s vast user base and data as a key advantage.**

Jim Cramer, known for his bullish stance, highlighted Meta’s AI capabilities back in January, praising its use of AI to enhance its advertising business. Since then, Meta’s stock has climbed roughly 30%, reaching $778 as of September 22nd. Cramer believes Meta is poised to benefit significantly, particularly if TikTok faces restrictions. He emphasized Instagram’s strength as a platform for businesses, driven by AI-powered ad packages.

Meta boasts approximately 3.48 billion daily active users, providing a wealth of data crucial for targeted advertising. In 2024, digital advertising accounted for roughly 98% of Meta’s total revenue. However, some analysts are cautious. While Meta’s ad business is currently strong, with ad prices increasing by 9% year-over-year in the last quarter, a projected slowdown in overall digital advertising growth and the company’s massive AI spending could potentially limit future stock gains.

Meta is expected to invest between $60 billion and $65 billion in capital expenditures in 2025 to build its AI infrastructure. Unlike companies like Nvidia, Meta needs to demonstrate tangible results from its AI spending to drive shareholder value in the near term.

First Eagle Global Fund acknowledged Meta’s potential in its recent investor letter, noting the company’s strong revenue and earnings growth driven by advertising. They highlighted Meta’s ability to focus on both profitability and efficiency while simultaneously investing in AI across its core business, the metaverse, and other applications.

While analysts see promise in Meta’s AI strategy, Insider Monkey believes other AI stocks might offer greater potential returns with less risk. Their report highlights what they consider the best short-term AI stock, positioned to benefit from Trump tariffs and onshoring.

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