Meta AI Glasses Projected to Bring Multibillion-Dollar Revenue Opportunity

Meta is banking on the future of wearable technology as it attempts to move beyond the screen. The company’s push into AI glasses has caught the attention of Wall Street, with Jefferies analyst Brent Thill highlighting a massive potential revenue stream that the firm believes is not yet fully reflected in the company’s current stock price. Jefferies maintains an $825 price target on shares, which implies nearly 28% upside from the stock’s Monday close.

Hardware Projections and Market Adoption

The optimism surrounding Meta’s hardware division is anchored in aggressive growth targets. Jefferies estimates that Meta could capture a $14 billion to $18 billion hardware revenue opportunity within the next few years. This forecast assumes an adoption rate similar to the Apple Watch, with an average selling price (ASP) of $400, which translates to approximately 35 million to 45 million units. To meet this demand, production capacity for the company’s wearable technology has been scaled significantly, with partner EssilorLuxottica reportedly boosting capacity to 20 million units for 2026, following a year where the company sold over 7 million units in 2025.

“While we see areas to improve, META has a first-mover advantage as the only player now shipping at scale… [and] we see a multi-billion dollar hardware revenue opportunity.”

Brent Thill, Jefferies analyst

The current lineup, which includes the Ray-Ban Meta Gen2 priced at $379, the Oakley Meta at $499, and the Ray-Ban Display with Neural Band at $799, has seen a surge in engagement. Daily users of the devices have tripled year-over-year, and total Meta AI monthly active users have reached approximately 1 billion. The glasses are described as screen-light, voice-first wearables that feature an integrated camera and open-ear audio, all connected to the Meta AI app.

The Long-Term Commerce Strategy

While hardware sales provide an immediate revenue vector, analysts suggest the ultimate prize for Meta lies in how these devices facilitate commerce. Thill noted that if “agentic AI” transitions from simple browsing to active delegation, the glasses could allow Meta to capture user intent exactly at the point of discovery, moving the company closer to the transaction. Meta’s gross profit margin of 82% positions the company to capitalize on this hardware expansion while maintaining profitability.

“Longer term, the bigger prize is commerce: if agentic AI shifts from browsing to delegation, AI glasses could capture user intent at the point of discovery, moving Meta closer to the transaction.”

Brent Thill, Jefferies analyst

Beyond commerce, the firm expects additional revenue growth to stem from AI-linked subscriptions and advertising. Jefferies’ outlook is largely supported by broader Wall Street sentiment, with LSEG data showing that 57 of the 65 analysts covering Meta have a buy or strong buy rating on the stock.

Wall Street Sentiment and Financial Risks

Despite the enthusiasm from Jefferies, the broader market outlook remains nuanced. Meta faces scrutiny regarding its capital expenditure as it invests in AI infrastructure. While BofA Securities recently maintained a buy rating with a $835 price target—revising its second-quarter estimates to $60.6 billion in revenue and $7.50 in earnings per share—others are more cautious. BMO Capital Markets has reiterated a Market Perform rating with a $720 target, citing concerns over projected capital expenditure for 2026. Baird maintains an Outperform rating with an $830 target, noting that while AI infrastructure costs are factored into expectations, potential revenue benefits are not.

Furthermore, the company continues to navigate legal and structural shifts. Meta recently reduced its workforce by 10% in May and saw a significant decline in job postings during the second quarter. Additionally, Meta remains the sole defendant in a pending trial concerning claims of social media addiction, following a tentative settlement by Snap Inc. in a similar lawsuit.

Sources: CNBC, investing.com.