Wells Fargo Raises Meta Target to $1,000, Betting on AI Revenue Beyond 2027

Wells Fargo raised its Meta price target from $796 to $1,000 on October 6, 2026, betting that the company’s Muse AI agent can support a larger business over time. The bullish call comes with a near-term retreat: the bank cut its 2027 earnings forecast and removed billions in expected computing-capacity sales from its estimates.

The computing trade-off sits at the center of the revised forecast. Wells Fargo removed 500 megawatts of expected capacity resales from its 2027 estimates, equivalent to roughly $5 billion in potential high-margin revenue. CNBC’s Investing Club account says the analysts believe Muse’s early success makes it increasingly likely Meta will need that computing power for its own services instead.

Reselling capacity would mean earning money by letting other customers use computing infrastructure. Supporting Muse means allocating that capacity to Meta’s own agent business. The removed sales are an analyst assumption, not a confirmed Meta decision to abandon a cloud business. Mark Zuckerberg said on July 1 that such a business was under consideration.

The higher target does not rest on an immediate earnings payoff. Wells Fargo does not expect Muse to meaningfully boost Meta’s results in 2027. It estimates operating expenses could reach roughly $212 billion that year as Meta builds infrastructure for its AI ambitions, compared with the current Wall Street consensus of $202 billion.

The bank cut its 2027 earnings estimate to $31.18 per share and forecasts $40.02 in 2028, when it expects AI product revenue to contribute more meaningfully. Analyst Ken Gawrelski describes 2027 as a potential earnings low point in a new product cycle. His comparison is the beginning of Reels in 2022, though he sees Muse as a potentially much larger AI-driven cycle.

Muse launched on September 8 as a personal AI agent that lets users delegate tasks including sending emails, booking travel and making purchases. That puts it beyond answering questions: the product is designed to carry out work on a user’s behalf. Its early reception is the consumer backdrop to Wells Fargo’s revised valuation.

CNBC’s account of the analyst call reports that Muse reached the top spot among free apps on Apple’s App Store. Meta shares had gained nearly 20% since the agent’s launch, against a 1.5% gain for the S&P 500. Those measures describe app popularity and share performance, rather than the future revenue contribution Wells Fargo is forecasting.

Gawrelski expects Meta to temper near-term expectations for making money from Muse. His longer-term case also includes AI opportunities in messaging, advertising tools and new consumer applications—not just the agent itself.