Citi analysts are “incrementally positive” on Meta Platforms Inc (NASDAQ:META, ETR:FB2A, SWX:FB)’s artificial intelligence (AI) glasses strategy and believe adoption could reach a tipping point in 2026.
“To be sure, while use cases for smart glasses continue to evolve, it is increasingly clear to us that the capabilities of these devices are growing, that Meta has a multi-year head start, and that its Essilor Luxottica partnership is creating differentiated products (like the Meta Ray-Ban Display and the Neural Band)," the analysts wrote in a note to clients.
In their call with Erick Tseng, former senior director of product management at Meta, Tseng outlines the three waves to smart glasses adoption: hands-free moments; AI-powered experiences; and digital overlay.
The Citi analysts said they believe the company is currently in the second wave with the glasses, “a natural extension of AI as superintelligence evolves the broader internet experience”.
They reiterate their ‘buy’ rating on Meta stock and target price of $915 per share, adding that the company remains a top pick.
Meta Platforms shares were essentially flat at $754.70 in midday trading on Wednesday, but have gained 26% year to date.