HSBC Reiterates Buy Rating on Meta, $905 Price Target

HSBC analyst Nicolas Cote-Colisson reiterated a Buy rating and $905.00 price target on Meta (NASDAQ: META).

“We see Meta benefiting from its early involvement in AI models and very high investment.

AI already supports Meta’s advertising business effectively, driving higher usage and therefore increasing ad space.

Large language model competition carries on and Meta is by no means the best positioned in the Generative AI traffic that is led by OpenAI, Gemini, Deepseek or Claude, but we understand its focus has first been to leverage AI for its main business (advertising).

Next week we will focus on a more precise set of guidance for 2026 capex and opex.

On the Q3 25 call, CEO Mark Zuckerberg said that Meta operates in a “compute-starved state” and the core business (Family of Apps) needs more, even before thinking of Meta Intelligence Labs compute requirement to reach a General Intelligence state.

For FY 26, Meta has guided capex dollar growth to be “significantly larger” vs the +USD32bn in FY25 (at guidance mid-point) and consensus assumes +USD39.4bn in 2026.

Meta so far guided total expenses to “grow at a significantly faster percentage rate in 2026 than 2025”. Consensus expects +23% in 2025 and +28% in 2026.”

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