• In recent days, Meta Platforms announced it is in discussions to purchase billions of dollars’ worth of Google’s tensor processing units (TPUs) to support its growing artificial intelligence operations, while also securing major legal victories in two high-profile antitrust cases brought by the Federal Trade Commission over the company’s market position. Together, these developments highlight Meta’s evolving approach to AI hardware sourcing and underscore a period of increased regulatory clarity for the company.
• We’ll examine how Meta’s potential shift to Google’s AI hardware could influence the company’s long-term growth and innovation prospects.

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Meta Platforms Investment Narrative Recap

Owning Meta Platforms rests on confidence that continued advances in AI will drive expanding advertising revenues, user engagement, and new product monetization, offsetting rising investments in infrastructure and regulatory headwinds. The recent news about Meta’s potential adoption of Google TPUs likely does not alter the most important immediate catalyst (ad performance gains from AI) or address the major near-term risk: that escalating operating expenses could pressure margins and free cash flow if revenue growth does not keep pace.

Among the recent developments, Meta’s Q3 2025 earnings announcement stands out, with revenue rising to $51.24 billion year-over-year, even as net income fell. This financial trajectory ties directly to the current catalysts and risks: higher spending on AI infrastructure is already affecting reported margins, a trend investors are watching in light of Meta’s ambitious innovation plans.

On the other hand, investors should pay close attention to how ongoing increases in capital expenditures for AI and data centers could affect…

Read the full narrative on Meta Platforms (it’s free!)

Meta Platforms is projected to achieve $275.9 billion in revenue and $92.1 billion in earnings by 2028. This outlook depends on an annual revenue growth rate of 15.6% and a $20.6 billion increase in earnings from the current $71.5 billion.

Uncover how Meta Platforms’ forecasts yield a $841.42 fair value, a 30% upside to its current price.

Exploring Other Perspectives

Across 87 community opinions on Simply Wall St, fair value estimates for Meta range broadly from US$538.09 to US$908.35. Many see the company’s expanding AI-driven ad initiatives as a major force, but outlooks still widely differ, explore these alternative perspectives to broaden your understanding.

Explore 87 other fair value estimates on Meta Platforms – why the stock might be worth as much as 40% more than the current price!

Build Your Own Meta Platforms Narrative

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your Meta Platforms research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Meta Platforms research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate Meta Platforms’ overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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