Alphabet Or Meta: Whose AI Build Would You Rather Fund?

Alphabet's Google is launching Project Suncatcher, deploying AI chips in space via SpaceX's Transporter-18 mission. The initiative aims to overcome terrestrial infrastructure constraints. Google's Trillium TPUs underwent ground tests to ensure radiation resistance. The mission will test thermal management in space, with further tests planned for 2027. Commercial viability is years away, but investors may monitor progress.

Meta Platforms' stock rose 2.9% to a 52-week high of $767.78 after its Connect 2026 conference unveiled new AI hardware, including the Muse personal AI agent and VR Glasses. Analysts raised price targets, with Wells Fargo setting a $796 target, citing Muse's rapid adoption and revenue potential. Despite a broader market decline, Meta's stock outperformed due to strong company-specific catalysts.

Meta unveiled $1,299 VR glasses at its annual event, featuring 5K displays, Dolby Vision, and spatial audio. The glasses, five times lighter than its 2024 Quest 3, offer 3D films from Disney, Lionsgate, and others, plus immersive sports experiences. Powered by a Qualcomm chip, they include an AI agent and support Xbox Cloud Gaming. Shipping begins next spring.

Airbnb (ABNB) fell 8% to $150 despite 17% revenue growth, as investors reacted to Meta's AI agent Muse, which could bypass travel intermediaries. Booking Holdings (BKNG) and Expedia (EXPE) also dropped. Airbnb's unique inventory and direct host-guest relationships may mitigate AI impact. The stock's consensus target is $184.35.

JPMorgan raised its price target on Meta Platforms (META) to $920 from $820, citing progress in AI initiatives, particularly its Muse product. The stock is near its 52-week high. Analysts highlight rapid improvements and partnerships, with multiple firms maintaining positive ratings and targets. Meta's gross profit margin is 82%.

Meta Platforms launched Meta VR Glasses, a $1,299 VR device resembling oversized sunglasses, weighing 100 grams. It features an external computing pack, dual micro-OLED displays, and a spring 2027 release. The device competes with Apple's Vision Pro, offering a lighter, cheaper alternative with overlapping features and new additions like hologram-style video calls. Meta aims for profitability in VR, according to the company.