Meta Platforms (META) stock is up over 10% in the past five days thanks to optimism for the Muse AI agent launch. Tech analyst Dan Ives thinks investors discounted the AI potential of the social media company.

With a base of more than 3.5 billion users to tap into, Ives says there are huge opportunities for the company in the AI space and with new product launches.

As for Muse, Ives is bullish going forward on what this means for the company.

"I think it's a game changer," Ives said on CNBC's "The Exchange" Tuesday.

Ives said, "investors discounted Meta and Zuckerberg" and the billions of dollars they were spending, highlighting Meta CEO Mark Zuckerberg.

Ives said Muse is for the average consumer and a great way to connect with Meta users who are already on the platform, using apps like Facebook and Instagram.

The tech analyst highlighted this as part of the entrepreneurial spirit of Meta, which is needed in the current AI race.

AI Race Heats Up

Meta and Apple Inc. (AAPL) may be companies that investors and analysts saw as behind in the AI race, but Ives doesn't believe that's the case anymore.

"When you count some of these companies out, whether it's Apple, whether it's Meta, look at what happens," Ives said.

Ives said the value is going to be less in models and more in the data for companies.

"This is an AI arms race."

The tech analyst predicts that trillions of dollars are going to be spent in the AI space, with this being "just the beginning."

"We are still in the third inning of this AI revolution."

META Stock Price Action

Meta stock is up 1.61% to $748.44 on Wednesday, with shares hitting a new 52-week high of $763.90 during the intraday trading session. Meta stock is up 10% over the last five days and up 15% year-to-date in 2026.