JPMorgan Lifts Meta Price Target to $920 on Muse AI Agent Momentum as Treasury Yields Pressure Chip Stocks

JPMorgan raised its price target on Meta Platforms stock to $920 from $820, maintaining an overweight rating, citing the early success of its Muse AI agent following a product showcase at Meta's Connect conference. Analyst Doug Anmuth said Muse has the potential to become the most popular consumer AI application since ChatGPT, implying roughly 24% upside from Wednesday's close. Constellation Research's Ray Wang also weighed in positively, saying Meta has successfully integrated AI, hardware and data.

Meta's Muse Charm gadget received more mixed commentary. Barron's noted the hardware device could be a commercial flop but argued the stock would likely shrug off that outcome given broader momentum behind the software agent. The company is betting Muse Charm can reverse the persistent pattern of AI hardware failures by consumer tech companies.

Meanwhile, chip stocks came under pressure ahead of Thursday's open as a renewed Treasury selloff forced a valuation test on the broader AI trade. Intel fell about 3.4% in pre-market trading, AMD dropped 2.3% and Nvidia lost 1.3%, with investors weighing whether 5% Treasury yields are eroding the risk premium that has supported AI-linked equities.

On the AI infrastructure side, CoreWeave announced a new multi-year customer agreement and received a Buy rating and a $120 price target from UBS, a non-consensus call implying roughly 40% upside. UBS analyst Karl Keirstead grounded the target at 3.8 times 2028 sales, pointing to strong AI compute demand as the basis for the bullish stance.

At the United Nations General Assembly, world leaders were reported to be racing to establish AI controls, with discussions taking place in group chats among heads of state. Separately, MarketWatch noted that easing tensions between the US and China over Taiwan, as Trump and Xi held meetings on the sidelines, could ripple through chip stocks tied to the AI boom.