- Meta Platforms (META) Seen Benefiting From AI Push, but Costs Stay in Focus
May 11, 2026
Analysts have recently become more bullish on Meta Platform’s AI opportunity, entitling the stock to third place on our list of 12 AI Stocks Wall Street Is Watching Now.
On May 5, Mizuho analyst Lloyd Walmsley lowered the price target on the stock to $835.00 (from $850.00) while maintaining an Outperform rating.
While the firm is positive on Meta, it is somewhat cautious and closely watching it on its execution and cost discipline. It expects Meta to roll out more AI products, which will likely explain what the company plans to do with its new and improved LLM model and how it can eventually monetize.Meta Platforms (META) Seen Benefiting From AI Push, but Costs Stay in Focus
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Mizuho particularly acknowledged Meta’s vision for developing agentic AI “for mom.” Like other AI labs, this means that Meta isn’t just serving businesses but focusing on everyday users across its platforms. It also highlighted the encouragement from hearing the company flag “ large increases in Meta AI use” since the Muse Spark launch.
We believe it is critical for Meta to (1) demonstrate more of a product roadmap and adoption progress, and/or (2) figure out how to curtail cost/capex growth ahead of the 2Q print and guide for 3Q, given significantly harder comps. If growth peaks in 2Q, unless we get one of the above definitively, the multiple could compress. Maintain Outperform, target to $835 (from $850).
While we acknowledge the potential of META as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: 33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy.
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- SoftBank's $100 Billion France AI Push Could Reshape Data Center Race
May 11, 2026
This article first appeared on GuruFocus.
SoftBank Group Corp. (SOBKY) founder Masayoshi Son is exploring a potentially major AI infrastructure push in France as demand for data center capacity continues to accelerate. According to people familiar with the matter, Son has held talks about unveiling an ambitious French AI data center project with President Emmanuel Macron in the coming weeks. The Japanese entrepreneur is considering a multibillion-dollar investment in the country as part of SoftBank's broader AI infrastructure buildout. Son has also floated the idea of putting as much as $100 billion into France, though people familiar with the discussions said he may not reach that level if he decides to prioritize other projects. Macron proposed the AI idea during a recent meeting with Son in Tokyo, and the announcement could come as soon as this month, potentially during the Choose France Summit, which Macron started in 2018 to attract foreign investment and promote France's business appeal.
Warning! GuruFocus has detected 7 Warning Signs with SOBKY. Is SOBKY fairly valued? Test your thesis with our free DCF calculator.
The possible France project would add to a growing list of AI infrastructure ambitions that could reshape SoftBank's capital allocation story, while also raising questions about financing. Son has already announced hundreds of billions of dollars in AI infrastructure investments around the world that have not yet been realized, and the details of the French project remain in flux. The potential France buildout follows SoftBank's March announcement of a large-scale data center project in Ohio that could channel $500 billion toward 10 gigawatts of capacity, powered by roughly $33 billion worth of natural gas-fired electricity. The company is also working with OpenAI, Oracle Corp. (NYSE:ORCL), and Abu Dhabi's MGX on the $500 billion Stargate initiative to roll out data center facilities across the US. In addition, SoftBank has committed to investing more than $60 billion in OpenAI for a stake of about 13%, though Bloomberg reported that the company downsized plans for a $10 billion margin loan backed by the OpenAI stake after hesitation from some creditors, with SoftBank and its bankers discussing an amount as low as $6 billion.
For investors, the potential French investment could signal how aggressively Son wants to secure AI compute bases across major global markets as technology companies race to meet rising demand for AI services. Amazon.com Inc. (NASDAQ:AMZN), Alphabet Inc. (NASDAQ:GOOG), Microsoft Corp. (NASDAQ:MSFT), and Meta Platforms Inc. (NASDAQ:META) now plan to spend as much as $725 billion this year on AI infrastructure, almost double last year's level, highlighting the scale of the capex cycle surrounding AI. France could be an important piece of that strategy because Macron has pushed for sovereign AI outside the US and China, backed local players such as Mistral AI, and promoted France's energy grid and nuclear power supplies as advantages. At last year's Choose France Summit, Nvidia Corp. (NASDAQ:NVDA) and MGX announced plans with Mistral to build a 1.4 gigawatt site, while the UAE said it would spend between 30 billion and 50 billion on a new campus in France, according to French officials. The core investor question is whether SoftBank can turn Son's increasingly global AI infrastructure vision into funded, realized projects at the same scale being discussed.
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- Amazon Taps Swiss Debt Market As $725 Billion AI Spending Wave Builds
May 11, 2026
This article first appeared on GuruFocus.
Amazon.com (NASDAQ:AMZN) is preparing to issue Swiss franc bonds for the first time, marking another step by Big Tech hyperscalers to broaden their funding base as artificial intelligence spending continues to rise. The company has mandated BNP Paribas SA, Deutsche Bank (NYSE:DB), and JPMorgan Chase (NYSE:JPM) for a six-part Swiss franc bond sale with maturities ranging from three to 25 years, according to a person familiar with the matter. The move could give Amazon access to a market where demand for high-grade US corporate issuers remains steady, while also allowing the company to tap multiple investor groups across different parts of the maturity curve.
Warning! GuruFocus has detected 4 Warning Sign with AMZN. Is AMZN fairly valued? Test your thesis with our free DCF calculator.
Amazon said the proceeds would be used for general business purposes, including supporting investment and capital expenditure, as well as repaying upcoming debt maturities. The potential Swiss franc debut comes after a wave of large European bond issuance from technology companies seeking to diversify beyond dollar debt while raising capital linked to AI infrastructure investment. Alphabet (NASDAQ:GOOG), Google's parent company, raised about 3 billion Swiss francs, or $3.9 billion, in February, the largest corporate borrowing ever in that market, while Amazon's debut euro bond in March set the same record for that currency.
The broader investment backdrop remains significant for investors. Amazon, Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Alphabet are planning to invest as much as $725 billion this year in AI data center equipment and other capital expenditure, a bigger total than previously expected. Apostolos Bantis, managing director of fixed income at Union Bancaire Privee Ubp SA, said the Swiss market continues to offer steady demand for high-grade names and a strong bid for familiar US corporate issuers. Bantis also noted that issuing several maturities at once can help borrowers reach different investor pockets, raise more money, and keep concessions tight while the window remains open.
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- Update: Market Chatter: Meta Platforms Sued by California County Over Alleged Scam Ad Profits
May 11, 2026
(Updates with Meta's comment in 3rd to 5th paragraph) Meta Platforms (META) is being sued by Sant
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- Nvidia bull unveils bold new AI trade Wall Street hasn't named yet
May 11, 2026
This article first appeared on GuruFocus.
Lux Capital co-founder Josh Wolfe said his latest conviction idea centers on lifecording, a theme built around wearable hardware that records daily life while AI processes the data, according to comments he made at the Invest for Kids conference and in a post last week.
Nvidia (NASDAQ:NVDA) remains part of the backdrop for his broader view.
Warning! GuruFocus has detected 5 Warning Signs with NVDA. Is NVDA fairly valued? Test your thesis with our free DCF calculator.
Wolfe has framed the trade as one aimed at suppliers rather than device makers, arguing that the winners may be the component companies that benefit no matter which product category dominates. He described that approach as an arms dealers strategy, a view he also used in earlier bets on Nvidia and memory suppliers.
The thesis points to products from Meta (NASDAQ:META), Amazon (NASDAQ:AMZN) and an OpenAI-Jony Ive project as early signs that the market may be moving toward AI-enabled wearables. Wolfe said the category does not yet have a Wall Street label, which he sees as part of the opportunity.
Nvidia is still central to the broader AI trade he is watching, but the next winners may be less obvious.
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- Santa Clara County Counsel Files Landmark Civil Prosecution Taking On Meta's Role in Massive Consumer Fraud
May 11, 2026 · businesswire.com
SANTA CLARA COUNTY, Calif.--(BUSINESS WIRE)--Santa Clara County Counsel Tony LoPresti filed a landmark civil prosecution against Meta Platforms, Inc. The action, which is the first brought in California and the first brought by a local civil prosecutor in the nation, alleges that Meta knowingly facilitates and profits from billions of scam advertisements on its popular Facebook and Instagram platforms that defraud seniors and families and squeeze legitimate small businesses out of fair access t.
- SANTA CLARA COUNTY COUNSEL FILES LANDMARK CIVIL PROSECUTION TAKING ON META'S ROLE IN MASSIVE CONSUMER FRAUD
May 11, 2026
SANTA CLARA COUNTY, CALIF.--(BUSINESS WIRE)--SANTA CLARA COUNTY COUNSEL TONY LOPRESTI FILED A LANDMARK CIVIL PROSECUTION AGAINST META PLATFORMS, INC. THE ACTION, WHICH IS THE FIRST BROUGHT IN CALIFORNIA AND THE FIRST BROUGHT BY A LOCAL CIVIL PROSECUTOR IN THE NATION, ALLEGES THAT META KNOWINGLY FACILITATES AND PROFITS FROM BILLIONS OF SCAM ADVERTISEMENTS ON ITS POPULAR FACEBOOK AND INSTAGRAM PLATFORMS THAT DEFRAUD SENIORS AND FAMILIES AND SQUEEZE LEGITIMATE SMALL BUSINESSES OUT OF FAIR ACCESS T.
- Tesla's Elon Musk, Apple's Tim Cook among CEOs set to join Trump on China trip
May 11, 2026
The White House on Monday released a list of 16 top executives invited to join President Trump on his trip to China this week.
The president is set to depart Tuesday for Beijing for a series of meetings expected to last through Friday that will likely touch on issues like increasing AI communication and managing trade.
The list released Monday includes many CEOs with direct business before China. Kelly Ortberg of Boeing (BA) is expected to be along for the trip as additional purchases by China of Boeing planes and engines are widely expected to be announced this week.
Likewise, agricultural giant Cargill will be represented by CEO Brian Sikes, with Chinese agriculture purchases also a topic of discussion.
The inclusion of Elon Musk of Tesla (TSLA) is also sure to garner intense focus after his high-profile fallout with Trump last year — even as the world’s richest man has appeared alongside Trump multiple times in recent months.US President Donald Trump shakes hands with Chinese President Xi Jinping as they hold a bilateral meeting at Gimhae International Airport on the sidelines of the Asia-Pacific Economic Cooperation (APEC) summit, in Busan, South Korea, October 30, 2025. (REUTERS/Evelyn Hockstein)·Reuters / REUTERS
Notably absent from the attendees is Nvidia’s (NVDA) Jensen Huang, who is not expected to be in attendance even as China has angled for access to the chipmaker’s leading-edge Blackwell chips.
Huang’s lack of attendance may stem from worries among more hawkish national security leaders in the White House regarding his willingness to push Trump toward opening up the Chinese market, said Henrietta Levin, senior fellow at CSIS and the director for China under the Biden administration’s National Security Council.
The expected list of this week’s attendees, while significant, is also a smaller contingent compared with the groups accompanying Trump on some recent trips.
It was one year ago that Trump traveled to the Middle East and crossed paths with about 60 CEOs while he was there during stops that featured a heavy focus on dealmaking from Saudi Arabia to Qatar to the United Arab Emirates.
The current headcount is also scaled back from Trump’s last visit to Beijing in 2017, during his first term, when the US leader was accompanied by 29 business leaders.Nvidia founder and CEO, Jensen Huang, speaks during the 29th annual Milken Institute Global Conference at the Beverly Hilton in Beverly Hills, California on May 4, 2026. (Patrick T. Fallon / AFP via Getty Images)·PATRICK T. FALLON via Getty Images
The tightened headcount may come from a schism within the White House between Trump’s personal instinct for “unfettered, enthusiastic” dealmaking with China and administration officials who are more hawkish on national security and don’t want to see US business interests further tied up with Beijing, Levin told Yahoo Finance.
This time around, the White House has tried to downplay expectations for major new deals and investment. A senior US official told reporters on Sunday that “there’s not a proposal out there for some massive investment” from China to the US, saying it “has not been on the negotiating table.”
Story Continues
Here’s the full delegation list, according to a White House official:
Tim Cook of Apple (AAPL) Larry Fink of BlackRock (BLK) Stephen Schwarzman of Blackstone (BX) Kelly Ortberg of Boeing Brian Sikes of Cargill Jane Fraser of Citi (C) Jim Anderson of Coherent (COHR) Larry Culp of GE Aerospace (GE) David Solomon of Goldman Sachs (GS) Jacob Thaysen of Illumina (ILMN) Michael Miebach of Mastercard (MA) Dina Powell McCormick of Meta (META) Sanjay Mehrotra of Micron (MU) Cristiano Amon of Qualcomm (QCOM) Elon Musk of Tesla Ryan McInerney of Visa (V)
Cisco (CSCO) CEO Chuck Robbins had been invited, according to the White House, but the company said he is unable to attend due to the company’s earnings schedule.
Ben Werschkul is Washington correspondent for Yahoo Finance covering economic policy and the intersection of financial issues and the nation's capital. He has covered Washington for over 20 years as a reporter and video producer, working previously at the New York Times and CNN.
Jake Conley is a breaking news reporter covering US equities for Yahoo Finance. Ben Werschkul is a Washington correspondent for Yahoo Finance.
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- Sector Update: Tech Stocks Rise Late Afternoon
May 11, 2026
Tech stocks were higher late Monday afternoon, with the State Street Technology Select Sector SPDR E
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- Tech Dominates; Nvidia’s Market Value Exceeds Entire Healthcare Sector of S&P 500
May 11, 2026
The tech sector has a record-high market cap of over $23 trillion, a 37% weighting in the S&P 500, the largest percentage ever.
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