Meta Platforms continues to ramp up its investments in the field of artificial intelligence. Last month, media reports suggested that the Facebook parent company had paused AI hiring, seemingly indicating a strategic pullback. However, less than a day later, Meta’s Chief AI Officer Alexandr Wang publicly refuted this claim, emphasizing that the company is not retreating but instead increasing its investment in the Meta Superintelligence Lab. A series of subsequent developments further demonstrate that Meta is still actively expanding its AI footprint. Although concerns about an “AI bubble” are growing in the current market, Meta’s stock still holds promising long-term growth potential.
When it comes to acquiring AI talent and technology, Meta spares no expense. Since the beginning of this year, the company has been aggressively recruiting top research talent with substantial compensation packages, with total remuneration for some individuals even reaching as high as $10 billion. Compared to the massive investments required for AI infrastructure—such as large data centers, which can cost hundreds of billions of dollars—the cost of talent acquisition, though high, remains manageable. Recent developments also underscore Meta’s commitment to doubling down on AI: on August 26, the company announced plans to invest $50 billion in building a data center in Louisiana; additionally, former Apple AI robotics lead Zhang Jian recently joined Meta’s robotics studio, a recruitment move that could help Meta achieve breakthroughs in areas like AI hardware.
Notably, Meta’s investment in AI is not limited to strengthening its core digital advertising business. The company plans to fully automate advertising on its social media platforms by the end of 2026, though it remains unclear how much this initiative will boost revenue. In fact, analysts have already tempered their expectations for Meta’s future profit growth, projecting only a 6.8% earnings per share growth rate for 2026. However, Meta’s AI strategy clearly has a broader vision: if AI software eventually becomes a significant profit driver for the company, rather than merely serving advertising and hardware businesses, its growth ceiling could be substantially raised.
Although one study notes that most AI investments have yet to yield returns, as the technology matures and application scenarios deepen, generative AI is expected to become a more valuable commercial tool. Meta anticipates that by the 2030s, AI could generate hundreds of billions or even trillions of dollars in revenue through non-advertising businesses such as revenue sharing and model subscriptions.
If Meta can gradually increase the proportion of AI software in its total revenue, the market may reassess its valuation. Currently, Meta’s price-to-earnings ratio is 26.7x, significantly lower than Microsoft’s 36.5x. If AI software drives growth beyond expectations, coupled with the dual catalysts of valuation expansion, Meta’s stock price could see significant upside. Against the backdrop of its current share price retreating from highs, this is even beginning to attract some investors to consider buying.
