TLDR
- Meta stock rose 4% on September 3 after releasing Muse Spark 1.3, its updated AI coding model
- Bank of America kept its Buy rating and $810 price target, implying 32% upside from the September 3 close
- Muse Spark 1.3 uses 20% fewer tool calls and 25% fewer tokens than version 1.2
- Meta’s custom MTIA chips, built with Broadcom, could represent 15-20% of total AI capacity
- Meta is currently trading below its historical earnings multiple, at 18x projected 2027 GAAP earnings
Meta stock closed at $613.62 on September 3, up about 4% on the day. The broader market rose around 1%, so something was moving Meta specifically.
That something was Muse Spark 1.3.
Meta released the updated model on September 2. It is built for coding and agentic tasks and is available through Muse Code and the Meta Model API. The model uses roughly 20% fewer tool calls and 25% fewer tokens than Muse Spark 1.2 to complete comparable engineering work.
$META ROLLS OUT MUSE SPARK 1.3
Meta says its latest model delivers its biggest coding/agentic jump yet, matching GPT-5.6 Sol on Terminal-Bench 2.1 at 88.8 and scoring 75.4 on DeepSWE.
Available now in Muse Code/API. Zuckerberg also teased 🍉 Watermelon + open weights next. https://t.co/2hpuAOUszN pic.twitter.com/Zb5cVQIR7q
— Wall St Engine (@wallstengine) September 2, 2026
Pricing stayed flat from the previous version at $1.25 per million input tokens and $4.25 per million output tokens. Meta is going head to head with Anthropic’s Claude Code and OpenAI’s coding tools in the agentic coding space.
The new model handles longer-running tasks more reliably, manages multiple workflows in a single conversation, and pulls context from different sources.
What made Wall Street pay attention was the pace. Muse Spark 1.3 arrived roughly one month after 1.2. That kind of release cadence is fast.
BofA Makes the Bull Case
Bank of America analyst Justin Post kept his Buy rating and $810 price target after the release. That target implies 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. The company is developing a consumer AI agent internally codenamed Hatch, first reported by The Information. No commercial name or launch date has been confirmed.
Bernstein also reiterated an Outperform rating with an $800 target, pointing to Meta’s AI-enhanced advertising engine as a major advantage.
At around $617 when BofA published its note, Meta was trading at about 18 times projected 2027 GAAP earnings. Its historical average is closer to 21 times. The S&P 500 is currently at about 20 times. Meta is cheaper than both its own history and the index.
BofA’s $810 target is based on 24 times 2027 GAAP earnings. The bank argues that premium is justified given Meta’s growth rate.
The Chip Strategy
There is a hardware angle to this story too.
Broadcom said on its Q2 2026 earnings call that it expects to deliver three generations of Meta’s custom Training and Inference Accelerator chips through 2027. It also has visibility into roughly three gigawatts of Meta deployments through 2028, with production shipments expected to start in Q4 2026.
BofA estimates those MTIA deployments could eventually represent 15% to 20% of Meta’s total AI capacity.
KeyBanc kept an Overweight rating but cut its price target to $760 from $855. The firm said Meta Superintelligence Labs had made meaningful progress with Muse Spark but noted that the burden of proof for AI returns keeps rising.
Meta’s 52-week range runs from $520.26 to $790.80. After the September 3 gains, the stock is still sitting in the lower half of that range.
Production shipments of MTIA chips are scheduled to begin in Q4 2026.
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