Meta Platforms, Inc. is making rapid strides in artificial intelligence development, outpacing competitors with new features across its services.
Meta Platforms, Inc. (NASDAQ: META) is making significant strides in artificial intelligence development and implementation across its services, outpacing some of its major competitors like Google’s parent company Alphabet (NASDAQ: GOOG) and Apple (NASDAQ: AAPL).
The company’s recent stock performance reflects investor confidence in its AI-driven strategy, with shares up over 3% in morning trading. This article examines Meta’s latest AI advancements and their potential impact on its market position.
Meta has invested heavily in AI infrastructure, deploying over 340,000 Nvidia H100 GPUs to support its ambitious AI initiatives.
The company is currently beta testing several AI-powered features on WhatsApp, including the ability for users to choose between different Meta AI Llama models for varying prompt complexities and AI-generated images based on user photos with built-in privacy controls.
In addition to messaging enhancements, Meta is improving its video calling capabilities with AI-driven audio and video quality improvements, screen sharing with audio, and an expanded capacity for up to 32 participants.
The company has also introduced Meta 3D Gen, an AI model capable of generating high-quality 3D assets from text prompts in less than a minute. It utilizes physically-based rendering for realistic lighting.
Market Position and Competition
Meta’s rapid deployment of AI features across its platforms appears to be outpacing efforts by competitors such as Google and Apple.
While Apple recently announced its Apple Intelligence AI features and Google has been promoting AI adoption, Meta’s cloud-based approach is already in beta testing, potentially reaching a broader consumer base due to its larger install base.
CEO Mark Zuckerberg has teased an upcoming “full holographic” glasses product, described as the “most advanced piece of technology on the planet in its domain.”
While not immediately available for purchase, this product underscores Meta’s commitment to pushing the boundaries of AI and augmented reality technologies.
Meta’s Stock Gains on AI Progress
As of 10:49 AM EDT, Meta’s stock was trading at $526.51, up 3.25% from the previous close. The company’s market capitalization stood at $1.336 trillion, with a price-to-earnings ratio of 29.34.
Meta’s stock has significantly outperformed the S&P 500 index, with year-to-date returns of 49.06% compared to the index’s 16.28%.
Analyst sentiment remains bullish on Meta.
The company’s impressive financial performance and aggressive AI strategy resonate with investors, as evidenced by its substantial returns over various time horizons, including a five-year return of 167.56% compared to the S&P 500’s 85.13%.
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Originally Posted July 8, 2024 – AI Progress Drive Meta Shares Up as Firm Outpaces Tech Rivals
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