Morgan Stanley analyst Brian Nowak reiterated on June 6 that Wall Street is underestimating Meta Platforms, Inc. (NASDAQ: META) as the company builds a widening competitive moat through massive artificial intelligence spending.
Nowak argued that investor sentiment around Meta has lagged behind other mega-cap technology peers, citing limited visibility into the company’s projected $380 billion capital expenditure plan for 2027 and 2028.
The Morgan Stanley analyst expects those capital investments to translate into tangible financial results, projecting an additional $1 to $3 added to the company’s earnings per share by 2028.
A key driver of that optimism is Meta AI, which Nowak believes positions the company to capture a significant share of the multibillion-dollar search advertising market.
Nowak’s analysis suggests that if Meta AI’s search tool retains 1 billion users and monetizes just 10% of daily queries, it could generate more than $10 billion in annual revenue.
The company has already taken steps to pursue high-margin revenue, having begun rolling out tiered subscription packages designed to diversify its income streams beyond traditional digital advertising.
Nowak reaffirmed Meta as a top pick among mega-cap stocks and maintained a $775 price target on the shares, signaling strong conviction in the company’s long-term growth trajectory.
Meta operates the world’s largest social media ecosystem, spanning platforms that connect billions of users globally while also advancing artificial intelligence research and development.
The company also develops mixed-reality hardware and wearable devices, positioning itself at the intersection of physical and digital connectivity as consumer technology continues to evolve.
With its AI infrastructure investment cycle well underway, Meta’s ability to convert that spending into durable earnings growth remains the central question for investors watching the stock closely in 2026.
Morgan Stanley’s continued endorsement places Meta among what the firm considers the strongest long-term holdings available in today’s technology sector, reinforcing confidence in the company’s strategic direction.
