Meta’s Early AI Strength Leads Bullish Analysts to Lift Stock Price Targets [Video]

Meta Platforms (META) shares rose Thursday after analysts lifted their price targets for the stock, citing positive signals surrounding the tech giant’s artificial intelligence (AI) opportunity.

Analysts said the company’s better-than-expected second-quarter results released Wednesday and the early AI gains, eased concerns about Meta’s increased spending to invest in the technology.

Meta shares were up 4.5% at $496.05 in recent trading, contributing to the stock’s nearly 40% year-to-date gain.

UBS analysts said “the most important development” from Meta’s earnings call was that it eased lingering uncertainty about the stock after AI spending worried investors after the company’s previous quarterly report.

The analysts said that the company’s third-quarter outlook indicates that Meta expects a strong second half of the year. They also said that CEO Mark Zuckerberg‘s remarks gave investors more clarity on the company’s expectations for AI spending and monetization.

UBS on Thursday lifted its Meta price target to $635 from $630.

Meta told investors that its …