Key Takeaways
- Shares of Meta Platforms jumped 4% on September 3 following the debut of Muse Spark 1.3, an enhanced AI coding platform
- Bank of America maintained its Buy recommendation with an $810 price objective, suggesting 32% potential gains from September 3 levels
- The new Muse Spark 1.3 demonstrates 20% reduction in tool calls and 25% fewer tokens compared to its predecessor
- Custom MTIA silicon chips developed with Broadcom may eventually account for 15-20% of Meta’s AI infrastructure
- The social media giant trades at 18x estimated 2027 GAAP earnings, below its historical valuation average
Shares of Meta Platforms finished at $613.62 on September 3, marking a roughly 4% gain for the session. While the overall market advanced approximately 1%, Meta’s outsized movement pointed to company-specific catalysts.
The catalyst was the launch of Muse Spark 1.3.
The company unveiled this upgraded version on September 2. Designed specifically for coding applications and agentic workflows, the model is accessible via Muse Code and the Meta Model API. Performance metrics show approximately 20% reduction in tool calls and 25% decrease in token usage versus Muse Spark 1.2 for similar engineering tasks.
The pricing structure remained unchanged at $1.25 per million input tokens and $4.25 per million output tokens. Meta positions itself as a direct competitor to Anthropic’s Claude Code and OpenAI’s development tools in the agentic coding market.
The enhanced version demonstrates improved reliability for extended tasks, better multi-workflow management within single conversations, and superior contextual awareness across diverse data sources.
What caught analysts’ attention was the velocity. Muse Spark 1.3 launched approximately 30 days after version 1.2. This iteration speed signals aggressive development momentum.
Analyst Optimism Remains Strong
Following the launch, Bank of America analyst Justin Post reaffirmed his Buy recommendation and $810 price objective. This target represents approximately 32% appreciation potential from the September 3 closing price.
Post’s analysis highlighted the agentic capabilities as groundwork for Meta’s future product pipeline. The company is reportedly working on a consumer-facing AI agent with the internal designation Hatch, according to reporting from The Information. Neither a public brand name nor release timeline has been disclosed.
Bernstein similarly maintained its Outperform stance with an $800 price target, emphasizing Meta’s AI-powered advertising platform as a competitive differentiator.
When BofA issued its research note, Meta traded around $617, equating to roughly 18 times forecasted 2027 GAAP earnings. The company’s historical multiple averages near 21 times. The S&P 500 currently trades at approximately 20 times. Meta appears undervalued relative to both benchmarks.
BofA’s $810 valuation derives from a 24 times multiple on 2027 GAAP earnings. The firm contends this premium valuation is warranted based on Meta’s expansion trajectory.
Custom Silicon Initiative
The investment thesis extends beyond software.
During its Q2 2026 earnings discussion, Broadcom disclosed expectations to supply three successive generations of Meta’s proprietary Training and Inference Accelerator processors through 2027. The chip manufacturer also indicated visibility into approximately three gigawatts of Meta infrastructure deployments extending through 2028, with initial production deliveries anticipated in Q4 2026.
BofA projects these MTIA implementations could ultimately comprise 15% to 20% of Meta’s aggregate AI computing resources.
KeyBanc maintained its Overweight recommendation while reducing its price objective to $760 from $855. The research firm acknowledged Meta Superintelligence Labs has achieved substantial progress with Muse Spark but cautioned that expectations for AI monetization continue escalating.
Meta’s 52-week trading range spans from $520.26 to $790.80. Following the September 3 rally, shares remain positioned in the lower portion of this band.
Initial MTIA chip production deliveries are slated to commence in Q4 2026.
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