Meta Platforms Inc (NASDAQ:META) launched Muse Spark, a new AI model from its Superintelligence Labs, on Wednesday, which marks a shift away from the Llama series.

The new LLM (large language model) capabilities have the potential to strengthen the company's product pipeline and ads performance, according to BofA Securities.

The Analyst: Analyst Justin Post maintained a Buy rating and price target of $885.

The Thesis: The company indicated that Muse Spark represents an initial step in its AI roadmap, "with multiple advanced models currently in development," Post said in the note.

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Muse Spark is expected to replace Meta Platforms' existing Llama-based chatbots across WhatsApp, Instagram, Facebook and smart glasses in the coming weeks, he added.

The model launch should enhance the company's "AI capabilities & positioning across both consumer and enterprise offerings," the analyst wrote.

Integrating Muse Spark into Meta Platforms' core ads stack is likely to improve targeting and personalization, driving ROAS (returns on ad spend) gains for core ads business, he further stated.

META Price Action: Shares of Meta Platforms had risen by 2.18% to $625.76 at the time of publication on Thursday.

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