Meta upgraded to overweight by JPMorgan amid improving AI sentiment

JPMorgan upgraded Meta Platforms from Neutral to Overweight on September 10, lifting its price target from $640 to $820, a move that implies roughly 25% upside from the stock’s prior close. What changed JPMorgan’s mind The same bank that downgraded Meta to Neutral in late April 2026 is now back in the bull camp. The April downgrade came on the back of anxiety over Meta’s enormous infrastructure spending and the absence of a clear return on anything outside advertising. Meta’s AI agent, Muse, climbed as high as No. 3 in the U.S. app store after launch. Muse is designed to act on behalf of users, performing tasks autonomously rather than simply answering questions. JPMorgan analyst Doug Anmuth flagged Muse alongside two other developments: the frontier model Muse Spark, and the rollout of the Meta Model API. In Anmuth’s view, these tools open revenue opportunities that extend well past the advertising business Meta has historically depended on. The company’s 2026 capital expenditure guidance sits between $125 billion and $145 billion. The updated thesis is essentially that Meta is close enough to proving the return on that investment to warrant re-engagement at a higher price target....