Meta Bets Big on AI Innovation to Boost Ads and User Experience While Rewarding Shareholders

Meta Platforms is making major investments in artificial intelligence (AI) to improve targeted ads and recommendations.

Meta announced new custom AI chips (MTIA) to boost its AI capabilities and reduce reliance on 3rd party semiconductors.

Meta is very profitable, with $43B in 2022 free cash flow, allowing large investments back into the business.

Meta initiated a dividend and $50B increase in its share repurchase program to reward shareholders.

Meta is focused on long-term AI opportunities and its stock valuation may not fully price in this potential.