Meta Platforms (NASDAQ:META | META Price Prediction) seems to be in quite a strange spot in this AI race. On the one hand, the company is spending a fortune (between $115 billion and $135 billion) on CapEx to advance its AI efforts, just like its Mag Seven peers are, but, at the same time, Meta’s current consumer-facing AI offering, Meta AI (based on the open-sourced LLaMA 4 family of models), isn’t exactly a hot seller compared to the likes of OpenAI’s ChatGPT.
With Meta shifting gears towards closed-source with its Avocado and Mango family of models, things are definitely going to change by leaps and bounds in the coming months. Of course, some might consider Meta Platforms to be a bit behind when it comes to the raw firepower of AI models.
Meta is catching up — fast
That said, it’s catching up — and fast — as the AI model wars look to accelerate in 2026. Additionally, after a strong quarter of results with actual evidence that AI is paying off (and that it’s not just some experiment that won’t lead to returns), I think Meta might actually be one of the leaders in AI monetization, at least so far. In terms of trajectory, I think Meta’s AI plans might outshine its rivals.
On the one hand, you’ve got OpenAI, which is running into financial challenges come 2027, and, on the other hand, you’ve got a company like Apple (NASDAQ:AAPL), which seems content with not following the herd into a massive CapEx raise. Part of the reason Apple stock might be spared come the CapEx-driven meltdown in Mag Seven stocks is its slow-and-steady approach with AI.
Given AI features are not super-urgent (most smartphone users aren’t exactly buying new phones for AI; after all, one can just download an app for that), I’d say Apple has time and is smart to wait and see, rather than run the risk of overspending and setting up the stage for colossal disappointment later on. Either way, Apple seems to be playing from behind, while Amazon (NASDAQ:AMZN) might be getting a bit ahead of its skis with its $200 billion mic-dropper of a CapEx figure. Around $450 billion in value seemed to have been wiped out in response to such news.
Meta looks like the biggest early-stage AI winner
In any case, if I were to bet on an AI underdog that’s pivoting, it’d have to be Meta Platforms. Why? It has the superintelligence team to beat, at least in my opinion.
With Scale AI’s Alexandr Wang, the Chief AI officer over at Meta, and a wealth of talented researchers that might build Meta a racecar that has what it takes to achieve AGI (artificial general intelligence) before its peers, I certainly wouldn’t bet against the name, especially now that it’s moving from LLaMA towards a class of models that might allow it to gain a more massive durable competitive edge — something that only closed-source, at least in my view, can provide.
As a premier frontier intelligence play with a willingness to make bold moves (like the acquisition of agentic AI play Manus) and pay up handsomely to attract an all-star pool of talented AI researchers, I find the current valuation to be a bit ridiculous. The stock goes for 27.2 times trailing price-to-earnings (P/E), and it seems like Bill Ackman’s calls of undervaluation are going ignored, as shares have continued to slip lower, perhaps in response to the hefty CapEx figure, which is in control of much of the Mag Seven names right now.
Meta’s AI pivot has the potential to bear fruit
I think Meta Platforms will continue to serve up AI-jolted quarters in the coming years. And the best may have yet to come, as the firm repositions with new models (like Avocado) leading the charge.
With great personal context, a star superintelligence team, the ability monetize now (now, not in a few quarters from now or a few years from now!), and the willingness to enter new market verticals (especially in the enterprise), let’s just say I wouldn’t be surprised if we were all to view Meta as the AI leader in 2027. By then, perhaps a P/E multiple closer to 35 times would be more appropriate!
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