Meta unveiled its “most powerful” AI model to date this week, and Wall Street is obsessed with it.
The new meta-Large Language Model (LLM) competes with and even outperforms state-of-the-art products from OpenAI and Google Gemini on some benchmarks. Meta’s latest AI model sparked a flood of bullish comments from analysts at JPMorgan, Citi, Bank of America, and other large companies.
Muse Spark is the first LLM built by Meta Superintelligence Labs, and Meta hints at more LLMs to come. This model is available on Meta AI and will be rolled out to WhatsApp, Instagram, Facebook, and Meta’s AI glasses.
The announcement came earlier than investors expected, following reports that the model’s launch would be delayed until May.
Meta shares have risen 10% since Tuesday’s close following Wednesday’s announcement.
Here’s what Wall Street is saying about Meta’s latest AI deployment.
AI models should boost investor sentiment, says JPMorgan
JPMorgan reiterated its overweight rating on Meta stock following Muse Spark’s announcement.
“We believe investor expectations for META’s path to the frontier have been significantly lower following Q4 results, management comments in March, further model delays and reports suggesting META may tap Gemini in the interim,” the analysts wrote.
“The launch of Muse Spark should increase confidence in Meta’s expansionary trajectory and improve investor sentiment,” it added.
Citi announces new AI model to eliminate inventory overhang
Citi analysts rate Meta stock a buy.
“We believe the launch of Meta’s Muse Spark FM provides increased visibility into MSL’s product strategy for building personal superintelligence and eliminates important overhang amid expected launch delays,” the analysts wrote.
Ahead of Meta’s Q1 2026 earnings release, Citi said it is keeping an eye on updates on the company’s larger AI strategy. Analysts said the launch of Muse Spark is likely to lead to shorter development cycles and faster product pace.
They have a $850 price target on the stock, which would represent a 48% upside from Thursday’s price.
BofA suggests Meta’s ‘first big step’ could mean Google-like profits to come
Bank of America called Muse Spark “a major step in the evolution of Meta’s new LLM.”
Analysts said, “Meta outlines a roadmap to significantly improve LLM capabilities throughout the year and suggests scope for iterative performance improvements across future model releases.”
Meta could follow a similar trajectory to Alphabet stocks, they said, as better-than-expected advances in AI models lead to improved investor sentiment.
“We believe current valuations are attractive given the significant AI opportunity outpacing industry advertising growth and the strong financial position for AI,” they wrote.
Mizuho says there are promising signs that meta can compete with AI
Mizuho said the model’s earlier-than-expected announcement bodes well for Meta in the AI race.
“We believe that significant monetization potential could be unlocked by driving usage, especially in shopping mode,” they wrote.
The analysts added: “To convince investors of the size of the investment here, we think it will be important for Meta to be more specific about how it intends to commercialize its model beyond the Meta AI chatbot, both from a product and monetization perspective.”
Mizuho said releasing Muse Spark ahead of earnings will improve its structure.
William Blair says new AI models will save investors
Analysts at William Blair also expressed bullishness on Meta stock after the announcement.
“After delays and past criticism, we believe Meta’s announcement of a new model today provides some reassurance to investors,” they wrote.
Analysts said future model advancements and increased deployment scale will benefit Meta and help prove that the huge AI spending is paying off. They noted that developer adoption and incremental progress will take some time. Hoo