Meta Stock Rises as Custom Chip Strategy Takes Shape
Meta Platforms, Inc. saw its stock rise 4% on September 3 after releasing Muse Spark 1.3, an updated AI coding model that uses 20% fewer tool calls and 25% fewer tokens than version 1.2.
The new model handles longer-running tasks more reliably, manages multiple workflows in a single conversation, and pulls context from different sources.
Bank of America analyst Justin Post kept his Buy rating and $810 price target after the release, implying about 32% upside from the September 3 close. Post's note zeroed in on the agentic improvements as a foundation for what Meta is building next, including its consumer AI agent codenamed Hatch.
Meta's custom MTIA chips, built with Broadcom, could represent 15-20% of total AI capacity. Production shipments of these chips are scheduled to begin in Q4 2026.