SPX Technologies Stock Surges on AI Data Center Cooling Demand and Raised Forecast

Meta Platforms is drawing bullish analyst attention as its stock trades near $648 despite record quarterly revenue, with a $900 price target implying roughly 39% upside. Second-quarter revenue reached $60.8 billion, up 28% year over year, at a 31% operating margin, and the stock trades at a forward price-to-earnings ratio of 19, below the S&P 500's approximately 22 times forward earnings. Morgan Stanley analyst Brian Nowak maintains a $775 price target and projects Meta's AI pipeline could lift earnings per share by more than $10, a roughly 34% increase over 2025 adjusted EPS of $29.68, after the company settled youth social media addiction lawsuits for up to $18 billion over a decade. The bull case faces headwinds from capital expenditures of $31.1 billion in the second quarter, up 82% year over year, full-year 2026 capex guidance of $130 billion to $145 billion, and a Reality Labs loss of $4.62 billion, which compressed free cash flow to $784 million from $8.55 billion a year earlier. Meta guided third-quarter revenue to $61 billion to $64 billion, and its Connect 2026 event on Sept. 23 plus third-quarter earnings in late October will test whether the AI spending is translating into new revenue.

Vicor Corporation granted a non-exclusive license to a leading AI original equipment manufacturer for its patented Vertical Power Delivery technology, allowing the OEM to source VPD modules from both Vicor and unlicensed suppliers. The deal touches Vicor's key near-term catalyst of IP monetization while highlighting its dependence on licensing and enforcement outcomes. The licensing approach, combined with Vicor's patented VPD architecture that tackles the last inch problem in powering high-performance AI processors, could materially influence how hyperscalers structure their power-delivery supply chains. Vicor's narrative projects $1.4 billion in revenue and $453.8 million in earnings by 2029, with a $386.25 fair value implying 73% upside, while the most bullish analysts had already counted on roughly 48.7% annual revenue growth and earnings near US$486.1 million by 2029. The company's purchase of large sites in Merrimack and Hooksett to build ChiP Fab 2 and Fab 3 ties closely to the VPD deal, as expanded U.S. manufacturing could support module demand and supply chain redundancy even as underutilization risk and fixed cost pressure remain central issues.

The top five US hyperscalers are projecting a combined capital expenditure of $660 billion to $725 billion for 2026, nearly double their 2025 outlays, as the AI build-out shifts from software to physical infrastructure. Microsoft is guiding for roughly $175 billion in adjusted capital expenditure for both FY2026 and FY2027, with two-thirds of quarterly spend going to short-lived assets like CPUs and GPUs and the rest to long-lived data center infrastructure, and it added 1 gigawatt of capacity in Q3 FY2026, doubling its global footprint in two years. Amazon AWS has raised its 2026 capex guidance to approximately $220 billion, with CEO Andy Jassy saying AI capacity is expected to remain constrained through 2027 and contracted demand extending into 2028. Meta saw profit drop 14% in Q2 2026 despite a 28% revenue increase as its build-out, including a 1 gigawatt data center in Ohio and a Louisiana facility that could scale to 5 gigawatts, compressed margins, while Alphabet raised its 2026 capex guidance to as much as $205 billion and its Google Cloud backlog more than doubled year-over-year to $240 billion. The Stargate joint venture involving Oracle, OpenAI and others targets up to $500 billion in infrastructure investment by 2029, and Oracle's FY2026 capex reached $55.7 billion, more than doubling from the previous year.