Jensen Huang Praises Meta, Says ‘Nobody Uses AI Better’ – META Stock Rebounds In Premarket

• Nvidia CEO praised how Meta has incorporated AI in its social media services.
• META shares rebounded after a 7% drop over the last three sessions.
• Stocktwits sentiment for META was ‘bullish.’

Meta Platforms shares rose nearly 1% in premarket trading on Wednesday, appearing to draw support from Nvidia CEO Jensen Huang’s endorsement of the social media giant’s AI strategy.

“Nobody uses AI better than Meta,” Huang said in an interview with CNBC on Tuesday.

“AI went from a classical recommender system running on CPUs to now a generative AI, agentic system that is making recommendations. Everything from the way the social media works and the way they recommend ads and help appetizers create content has fundamentally been changed, and their earnings show it, and that's the reason why they're investing so hard, they see just a much larger future potential for it.”

The move follows a 7% decline in META shares over the past three sessions. With the stock down more than 9% year to date, some investors have begun questioning the stock outlook as scrutiny intensifies over the massive capital spending plans of Big Tech companies.

Retail View On META

On Stocktwits, the retail sentiment remained ‘bullish,’ unchanged from the previous day, with Huang’s comment being picked for discussion among traders.

One wrote: “Jensen Huang was asked who is using AI better than anyone else in the world. His answer wasn’t OpenAI. It wasn’t Google. It wasn’t even Nvidia itself. Here’s what he said on CNBC: ‘Nobody uses AI better than Meta.’”

META Valuation, Recent Catalysts

Currently, 57 of 64 analysts covering META have a ‘Buy’ or higher rating on the stock and the remaining seven rate it ‘Hold,’ per Koyfin data. Their average price target of $826.75 implies a 38% upside to the stock’s last close.

In terms of 12-month forward price-to-earnings, Meta Platforms, Inc. trades at 18.3x, making it the cheapest stock in the “Magnificent Seven” group by that measure. 

The stock’s Relative Strength Index (RSI) stood at 41.61, indicating relatively subdued momentum. An RSI reading above 70 is generally considered overbought, while a reading below 30 suggests oversold conditions; levels around 50 typically indicate neutral momentum.

On May 20, the social media giant laid off about 8,000 workers, or 10% of its workforce, and moved a similar number of employees internally. Last week, Meta announced subscription offerings for its flagship apps — Instagram, Facebook, and WhatsApp — and outlined early plans to open its cloud computing infrastructure to external businesses.

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