Wall Street ends higher on AI stocks buying

Microsoft and Meta reported significant capital expenditures, $41B and $31.08B respectively, driven by AI infrastructure. Both companies fund build-outs internally and via leases, with long-term commitments. Investors should consider lease accounting impacts and future revenue to assess returns.

Meta unveiled four new hardware products at Connect 2026, all centered around its Muse AI agent. Products include Ray-Ban Meta Gen 3 glasses, camera-free Ray-Ban Meta Audio, Meta VR Glasses, and the new Muse Charm. Muse will have shopping integrations and an encrypted mode by December 2026. Meta plans to monetize Muse through transaction fees charged to merchants, but faces challenges like Amazon blocking its access.

Meta announced its upcoming VR Glasses, priced at $1,299.99, with a spring 2027 release. The device weighs 100 grams and requires a separate 300-gram puck for computing. Hand tracking is prioritized, with over 75 games supporting it at launch. Supernatural, a fitness app, will be available on day one. Valve's Steam Frame received updates and a teardown revealed replaceable parts. INMO Air3 smart glasses were recalled due to overheating issues.

A US court ruled Meta misled users about privacy protections related to the Cambridge Analytica scandal. The verdict follows a 2021 lawsuit alleging improper data use. Meta could face a $5,000 penalty per violation, totaling over $2.5 trillion.

Microsoft updated its Copilot AI platform, merging chatbot, coding, and autonomous task features into one app. Shares rose over 4% on the news, outperforming the broader software sector. The update includes new pricing models and aims to boost enterprise AI adoption, with fewer than 7% of Office 365 seats currently using Copilot.

Anthropic agreed to a $11.6B, seven-year cloud infrastructure deal with Akamai, the largest in Akamai's history. The contract, six times larger than a prior $1.8B agreement, includes performance benchmarks and a warrant for 5% of Akamai's shares. Akamai expects $1.7B annual revenue by 2028, with $5.5B in capital spending planned.