Meta's new AI glasses are optimistic, and Wall Street investment banks are bullish

On Wednesday, at the "Connect 2025" event, Meta (META.US) launched several new smart glasses, including the first Ray-Ban Display smart glasses with a built-in display, the Oakley Meta Vanguard smart glasses aimed at athletes, and the next-generation Ray-Ban Meta smart glasses. The company is committed to a new generation of augmented reality (AR) smart glasses equipped with artificial intelligence (AI) technology, further enhancing its AI hardware product line.

Among them, the most notable is the Meta Ray-Ban Display, priced at $799, which will officially launch on September 30. The new smart glasses with a built-in display will be equipped with a wristband to control the glasses through gestures. Although there were some minor flaws in the AI glasses showcased at the event, the public's initial reaction to the product was generally positive. This is because the demonstration results validated Zuckerberg's long-held view that glasses will play an important role in the future development of personal computing and social interaction.

Regarding Zuckerberg's keynote speech at "Connect 2025," Wall Street investment bank analysts generally expressed optimism about Meta's progress in AI wearable devices.

Wedbush reiterated an "Outperform" rating with a target price of $920

Wedbush stated: "This event showcased new product launches covering AR/VR hardware and AI capabilities. Notably, the event introduced Meta's display glasses, which are its first consumer product to integrate AR and AI in the same form factor. We believe Meta has made encouraging progress on its AI product roadmap, and the investment in Reality Labs indicates a clear path toward next-generation consumer products and services."

Morgan Stanley reiterated an "Overweight" rating with a target price of $850

Morgan Stanley pointed out: "With this information, we recognize that a comprehensive strategy covering the next-generation computing platform is crucial. With self-developed hardware, an AI-based operating system, and high-quality content provided to users at launch, we believe Meta has all the elements needed to seize this opportunity."

JP Morgan reiterated an "Overweight" rating with a target price of $875

JP Morgan added: "META Connect showcased the company's progress in AI, and we remain optimistic about business opportunities in the AI field, including advertising, interaction, enterprise messaging, MetaAI, and AI devices. META Connect demonstrated META's ambition and progress in shaping the next generation of computing while reminding us that Meta has already invested billions of dollars in AI and the metaverse."

Truist Securities reiterated a "Buy" rating with a target price of $880 The institution stated: "Given that the newly launched wearable devices will help strengthen Meta's hardware and software ecosystem, which is still developing but already has AI capabilities, we are optimistic about the company's long-term growth prospects. Although the current scale of this field is small, it has enormous potential. We believe... the investment in wearable devices highlights Meta's ambition to make smart glasses the next important computing platform and to integrate AI devices with Meta AI and other services over time. Although the penetration rate of smart glasses is still low, their growth rate is very rapid."

Stifel reiterates "Buy" rating with a target price of $900

Stifel stated: "We watched the keynote speech at the Meta Connect annual conference, where Mark's presentation focused on Meta's next-generation AI glasses... The Meta Ray-Ban Display is priced at $799, which is a very acceptable price point considering the technology included in the product (despite some issues during live demonstrations)."

Bank of America maintains "Buy" rating with a target price of $900

Bank of America analysts who tested the Display glasses found them fully functional, not obstructing vision, and with intuitive navigation. The company remains optimistic that AR glasses will become leading devices in the AI era. Despite this positive sentiment, Bank of America pointed out that the $800 AR glasses may be entering the mass market too early due to limited style choices, price point, and battery life; however, it also expects the more affordable Ray-Ban Gen 2 glasses to sell strongly during the holiday season