AI agent adoption may be constrained by compute bottlenecks; Morgan Stanley remains bullish on Meta's (META.US) long-term commercialization prospects, raises price target to $820 and maintains "Overweight" rating.

Zhitong Finance APP has learned that a latest research report from Morgan Stanley points out that as AI agent applications gradually become widespread, the GPU computing power required to support their operation may become an important factor constraining user scale expansion. The bank estimates that for every additional 100 million daily active users of Meta Platforms' (META.US) AI agent Muse, approximately 1 to 4 gigawatts (GW) of GPU computing capacity may be needed. Although the massive infrastructure demand means that the adoption pace of AI agents may be slower than market expectations, Morgan Stanley remains optimistic about Meta's long-term commercialization potential, raising its target price from $775 to $820 and maintaining an "Overweight" rating.