Meta shares jumped 6% Friday and 15% for the week, marking their best weekly gain since early 2024, after the company detailed new advances in artificial intelligence and chip development. The rally erased year-to-date losses and left the stock modestly positive, though it still trails the Nasdaq’s 13% rise.
The company rolled out Muse Image and an upgraded agentic model, Muse Spark 1.1, signaling a push to broaden revenue beyond ads through subscriptions and potential external model access. Investor sentiment also improved on reports that Meta’s custom “Iris” AI chip could enter manufacturing in September as part of an expansion to 14 gigawatts of compute next year, potentially lowering infrastructure costs. Analysts at Bank of America and BNP Paribas said higher capital spending—Meta guided up to $145 billion for 2026—may continue, but argued new AI-driven monetization, advertising share gains, and optional cloud offerings could support the outlays.
Related article:
