Meta Stock Surges 14.8% on AI Model Launch; SemiAnalysis Says Company Could Rival Google Within 6 Months

According to SemiAnalysis, Meta's stock surged 14.8% this week as of July 10, marking the strongest single-week performance since February 2024, driven by a series of artificial intelligence breakthroughs. On July 9, Meta launched Muse Spark 1.1, its flagship AI model offering coding and reasoning capabilities that exceeded Google's Gemini in multiple benchmarks, with API pricing at approximately 25% of competitors' rates—significantly undercutting the market.

Meta plans to launch its proprietary Iris AI chip in September, co-designed by Broadcom and manufactured by TSMC. The company will deploy 7 gigawatts of computing capacity this year, scaling to 14 gigawatts by 2027, supported by five mega-scale "Titan" data centers. Deutsche Bank analyst Benjamin Black raised cloud service revenue estimates to $24 billion, citing infrastructure expansion. SemiAnalysis predicts Meta's AI capabilities could surpass Google within six months, potentially reshaping competition from a two-player race between Google and OpenAI to a three-way contest among Meta, OpenAI, and Anthropic.