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Wells Fargo Raises Meta Price Target to $796 From $640
Wells Fargo raised its price target on Meta Platforms to $796 from $640 while reiterating an Overweight rating, implying roughly 11% upside from the stock's current level near $715. The firm's thesis centers on product momentum from recent model releases and early traction on the Meta Muse assistant, with investor attention expected to focus on Muse usage statistics at Meta Connect. Since Muse Spark was integrated, Meta reported a 60% increase in daily users interacting with the assistant, an anchor Wells Fargo analyst Ken Gawrelski pressed management on during the Q2 call. Meta's Q2 2026 revenue rose to $60.80 billion, up 27.96% year over year, though diluted EPS of $6.18 missed the $7.22 consensus as costs climbed 55% on $2.40 billion in legal charges and $1.18 billion in severance. Management guided Q3 revenue to $61 billion to $64 billion and full-year capex to $130 billion to $145 billion, while the Street consensus target sits at $755.28 across 47 Buy and 8 Strong Buy ratings versus 7 Holds.
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Broadcom AI Revenue Surges 221% as 24/7 Wall St. Sets $426 Target
Broadcom's AI semiconductor revenue surged 221% year-over-year to $16.70 billion in fiscal Q3 2026, even as the stock trades at $357.61 and has gained just 3.71% year-to-date, prompting 24/7 Wall St. to issue a BUY rating with a $426.10 price target implying 19.15% upside. The September 2 report showed total revenue of $29.59 billion, up 85.5% year-over-year, with non-GAAP EPS of $3.32 marking the ninth straight beat, and management guided Q4 AI revenue to $21.7 billion, up 236%. CEO Hock Tan has targeted exceeding $100 billion in AI sales by 2027 and disclosed a Meta partnership for 3 gigawatts through 2028, an OpenAI commitment of 1.3 gigawatts in 2027 within a broader 10 gigawatts by 2029 agreement, and $6 billion in additional purchase orders from two unnamed customers. Broadcom's forward P/E of 19 sits below NVIDIA's 24, while Marvell Technology competes for the same hyperscaler ASIC sockets. Risks center on customer concentration among a limited number of hyperscale AI customers and expected gross margin compression toward 74% as AI silicon becomes a larger mix.
Microsoft Shares Slip as Publishers Press AI Copyright Testimony
Microsoft shares slipped approximately 0.8% to $493.84 Friday after news organizations unsealed parts of their summary-judgment filing in their copyright case against the company. The publishers are focusing on testimony from Microsoft and OpenAI executives, arguing that AI-generated answers can reduce the need for readers to visit the original news sites. Microsoft pushed back, saying those comments reflect individual views rather than settling whether its use of copyrighted material qualifies as fair use, and the court has not ruled on the publishers' allegations. For investors, the pressure point is the economics behind Copilot and AI search, since a ruling that answer engines materially erode publishers' traffic or licensing value could bring higher content costs or changes to how Microsoft's products surface information. At $493.84, Microsoft trades 15.66% below its GF Value estimate of $585.56.