Nvidia Reveals Meta AI Gains as Analysts Back NVDA Over META Stock

Nvidia disclosed that Meta’s GEM AI model delivered a 3.5x lift in Facebook ad clicks and over 1% improvement in Instagram conversions, confirming early ROI on hyperscaler AI spending. The updates tie these efficiency gains to Meta’s surging ad revenue—$196.17B in 2025 and a $243.46B forecast for 2026—while noting Meta’s $125–$145B 2026 capex. With Meta trading at roughly 32x free cash flow and a long payback horizon, analysts now recommend favoring GPU and infrastructure suppliers such as Nvidia ahead of Meta equity.