UBS raises Meta's stock price target to $908, betting that AI-powered ad targeting will keep driving revenue growth through 2026

UBS increased its price target for Meta Platforms stock from $872 to $908 per share while keeping a Buy rating, based on confidence that generative AI (machine learning software that can write, analyze, and understand text) will keep improving how Meta sells ads to businesses.

Meta's AI advertising system uses generative AI to better match ads to the right users and predict which ads will perform best—allowing advertisers to spend their budgets more efficiently, which makes Meta's ad platform more valuable to its core customers (small-to-large businesses paying for ad campaigns).

If UBS's prediction holds, Meta stock investors should see the company's per-share earnings and overall valuation grow through 2026, meaning anyone holding Meta stock or considering buying it may see gains; separately, advertisers using Meta's platform may see their AI-optimized campaigns deliver better results with lower costs.