Wednesday evening will bring the long-awaited results from the three titans of the “Magnificent Seven.” The hurdles for technology stocks are even higher given the increased valuations associated with artificial intelligence trading. Analysts are keenly watching for signs of growth in AI efforts, whether through physical products such as robots and smart glasses, or through AI-assisted software and models. Let’s take a look at what Wall Street analysts are expecting from the reports Meta, Microsoft and Tesla are expected to file after Wednesday’s close. Meta Meta stock has been flat for several months. The company’s stock is up just 1.6% since the beginning of the year and has declined less than 1% over the past 12 months, as investors view the company as a latecomer and spendthrift in AI product development. Meta’s valuation is low compared to big tech companies, which has some analysts optimistic about a buying opportunity. According to LSEG, 60 out of 65 analysts covering the stock rate it a “buy” or “buy.” The average consensus price target implies an upside of 24%. “With the impending 2026 guidance incorporating all AI costs and very little upside, now appears to be a good time for investors to start building positions,” James Caldwell, an analyst at Rothschild & Co. Redburn, said in a note to clients on Monday. META 5Y Mountain Meta’s stock price performance over the past 5 years. Analysts are primarily looking for details on Meta’s advertising power and AI spending plans. Caldwell called Meta’s advertising business a “demand machine” and said the company also has the potential to improve large-scale language models with new hardware from Nvidia’s new Blackwell system. Evercore ISI analyst Mark Mahaney is watching to see if Meta’s advertising power can sustain through the holiday quarter, especially as rising infrastructure costs and employee compensation weigh on total expenses this year. “For META in particular, the research suggests growth expectations are steady to slightly improving, driven by multiple demand tailwinds that remain in place, including WhatsApp as a continued contributor, as well as tiered monetization aspects such as Reels, Shopping/Advantage-style commerce formats, and overlay/partnership ads,” Mahaney wrote in a note on Sunday. Investors will also be watching for updates on the smart AI glasses Meta has been developing with Ray-Ban maker EssilorLuxottica since 2019. Meta announced earlier this month that it would delay international expansion of its $799 Ray-Ban display glasses due to inventory constraints and strong demand in the United States. Barclays told clients on Monday that Meta is likely to maintain its leadership position in smart glasses. The company predicts that smart glasses are “moving out of niche territory” due to generative AI and a wide range of products and price points driving huge demand. Microsoft analysts expect the company to respond to increased competition from AI model developers, particularly Anthropic’s Claude. Microsoft shares have risen about 7% over the past year, but have fallen more than 11% in the past three months since the company’s last quarterly results. The stock fell even though Microsoft reported better-than-expected first-quarter revenue and bottom line growth and 40% growth in its Azure cloud business. The details of demand for Azure services and Microsoft’s Copilot suite of AI software tools are crucial, especially as concerns over AI competition and automation have sent software stocks plummeting. Morgan Stanley analyst Keith Weiss remains bullish on Microsoft after recent research on enterprise adoption rates for Azure and M365 Copilot reflects increased usage. Weiss reiterated his overweight rating in a Jan. 14 memo, naming the stock his top pick. “Microsoft remains in the best position to capture incremental share of GenAI spending and IT budgets, but this is not reflected in the stock’s 23x GAAP P/E or PEG discount,” he said. Goldman Sachs analyst Gabriela Borges expects Microsoft’s AI investments to lead to steady growth for Azure over the next two years, with 40% to 45% growth expected over the next four quarters in particular. Given the recent release of Anthropic’s Claude Cowork and Claude Excel integrations, Borges said Microsoft needs to provide more details about its Azure AI stack. “We expect Microsoft to spell out durable competitive advantages in the face of new and evolving competition…These advantages include distribution, integration into enterprise workflows, security, and the ability to abstract models behind the Azure AI stack,” Borges wrote in a note to customers on Sunday. “Ultimately, we think Copilot could coexist with tools like Claude in the same way that Microsoft Defender (for endpoint security) coexists with CrowdStrike. However, for there to be less competition, Microsoft requires that the quality of Copilot’s output and its ease of use be at least on par with alternatives. Borges maintained a buy rating on Microsoft and a 12-month price target of $655, suggesting more than 36% upside. Tesla investors know the company’s stock story is moving beyond self-driving cars to ambitions to expand production of ride-hailing service Robotaxi and humanoid robot Optimus. Analysts say the company’s upcoming report will be critical to demonstrating progress on these fronts, especially after Tesla reported in early January that car deliveries fell 16% in the fourth quarter and 8.6% for the full year. Tesla stock has fallen more than 3% this year. The stock price has increased 9% over the past year. The gains primarily reflect optimism about its opportunities in autonomy and energy storage. Further evaluation will depend on the expansion and deployment of the robotaxi fleet and any signs that Optimus may become a real-world product. Barclays analyst Dan Levy said Tesla’s stock could rise further if the company can expand its ride-hailing market share in Austin alone, essentially showing it is expanding its fleet much like Alphabet Inc.’s Waymo is doing in other U.S. markets. “The market already sees significant value in Tesla for this growth. Tesla is one of only two publicly traded North American companies with a market cap of more than $100 billion and a P/E ratio of more than 125 times,” Barclays analyst Dan Levy said in a note to clients on Monday, leaving his weight rating on Tesla unchanged. “So, given this value already in the stock, we believe that for the stock to outperform further, Tesla will need to show clear progress on its efforts in robotaxis, FSD, and Optimus. Hoping for out-of-year opportunities is not enough. Cantor Fitzgerald analyst Andres Shepard sees a “huge long-term opportunity for TSLA,” but said he is awaiting further details on Optimus’ production schedule and fleet size. He also expects Tesla to enter the self-driving trucking industry within the next decade and wants updates on its production. Tesla has also attracted investor attention for its potential role in space-based technology, with CEO Elon Musk being loudly bullish on this given the energy benefits of running AI chips from space. William Blair analyst Jed Dorsheimer said Tesla could announce plans to integrate its AI infrastructure into its efforts to build space-based data centers. But Barclays’ Levy warned that Musk’s plan to launch SpaceX publicly could divert attention from Tesla, either by splitting Tesla’s retail investor base or by shifting Musk’s own focus from Tesla to SpaceX.
