Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB)’s AI-enabled glasses could represent a new growth opportunity for the company as the wearables move toward broader consumer adoption, according to Jefferies analysts who tested multiple models and highlighted the product’s potential as a future computing interface.
The analysts wrote that Meta’s AI glasses impressed across areas including camera quality, setup experience and their traditional glasses design, noting that the company currently has a first-mover advantage as the only major player shipping AI glasses at scale. Jefferies estimated that the category could create a $14 billion to $18 billion hardware revenue opportunity over the next several years, assuming adoption levels similar to the Apple Watch and an average selling price of about $400.
Meta’s AI glasses are screen-free, voice-controlled wearables that combine cameras, open-ear audio and integration with the Meta AI application. Jefferies tested three models, including the Ray-Ban Meta Gen2 priced at $379, the Oakley Meta priced at $499 and the Ray-Ban Display with Neural Band priced at $799, and wrote that the devices integrated naturally into daily activities including sports, communication and productivity.
The analysts’ base-case scenario estimates the hardware opportunity could translate into roughly 35 million to 45 million units sold, with additional potential upside from AI subscriptions, advertising and commerce-related monetization. Jefferies highlighted Meta AI’s growing user base, noting that monthly active users have reached approximately 1 billion and daily glasses users are increasing year over year.
Jefferies wrote that the longer-term opportunity could extend beyond hardware sales if AI assistants shift toward “agentic” experiences where users delegate tasks rather than simply search for information. In that scenario, the analysts noted that AI glasses could capture user intent at the point of discovery and potentially position Meta closer to future commerce transactions.
The analysts highlighted several strengths of the products, including camera performance, easy photo capture and synchronization through the Meta AI app. They also pointed to the open-ear audio experience as a key advantage, allowing users to listen to music, handle calls and receive notifications while maintaining awareness of their surroundings. Spotify integration, the glasses’ comfortable design and their ability to combine functions typically handled by a phone camera, earbuds and action camera were also cited as benefits.
However, Jefferies noted that the technology remains in development. The analysts pointed to areas for improvement including video quality, speaker volume, voice activation reliability, battery life and the adjustment required for users to incorporate the glasses into everyday routines. They also noted that launches in some regions, including Europe, have faced delays related to supply constraints and regulatory considerations around AI, privacy and always-on cameras.
Jefferies maintained a positive view on Meta’s AI glasses opportunity, writing that the company’s early position in the category could provide a long-term growth opportunity that is not yet reflected in current expectations.
Shares of Meta traded hands at $630 on Wednesday, down about 5% so far this year.
