Magnificent 7 stocks news, Oct 13, 2026

Amazon is in talks to acquire AI startup Decart for about $7 billion, a deal that could boost Trainium adoption and reduce reliance on Nvidia's CUDA ecosystem. MIT filed a patent lawsuit against AWS in Boston federal court over two data-security patents, with damages unspecified. Wells Fargo cut its price target to $329 from $338 and Cantor Fitzgerald also trimmed its target ahead of Q3, both keeping Overweight ratings, while free cash flow swung to a $7.6 billion outflow as capex jumped. Q2 results showed net sales up 20% and AWS revenue up 37% with a $496 billion backlog, and Q3 guidance calls for $197-202 billion in net sales. The stock edged down, staying in the upper half of its 52-week range.

Kaplan Fox filed a securities class action against Alphabet covering the May 19-July 16 class period, alleging that a report of Gemini 3.5 Pro being 'months behind schedule' knocked Class A and Class C shares down about 4.4%, with a lead-plaintiff deadline of Dec 1. BNP Paribas raised its price forecast to $450 from $420, citing Cloud momentum and a potential $100 billion external TPU sales opportunity by 2028, and Bank of America kept its Buy. Alphabet and Unity announced Unity Spark, an AI game-creation platform planned for launch later in 2026, while Ruth Porat said AI capex will rise significantly again in 2027. Investors are looking to the Oct 28 Q3 report, where Cloud growth expectations span 89% to 140% and EPS is seen above consensus. The shares inched higher despite the negative news tone, still well below their 52-week high.

Meta gained roughly 3% for a second consecutive session as the Muse Wonder and Muse Wonder Full model launch kept drawing bullish calls, with Truist's target lifted to $1,000 and BNP Paribas setting $885. The models claim frontier performance over GPT-6 and Claude Fable 5.1, and paid tiers at $20 and $100 a month open a subscription stream beyond ads. On a podcast, Zuckerberg acknowledged committing up to $200 billion to AI infrastructure without certainty it will work, a candid note as Q3 earnings approach on Oct 21. Ray-Ban Meta owners reported audio being recorded without the wake phrase despite the setting being disabled, reviving privacy scrutiny, while the camera-free Ray-Ban Meta Audio glasses drew strong reviews. The stock is now near the upper end of its 52-week range.

Barclays raised its MSFT price target to $600 from $512 and Deutsche Bank lifted its target to $600 from $550, both pointing to stronger differentiation in the upcoming earnings quarter. Microsoft's market capitalization reached $4.02 trillion, its first move above the mark since October 2025, and the stock traded within 1% of its all-time high before closing modestly higher. The company's carbon emissions rose 25% in 2025 to 20 million metric tons CO2e, driven by data-center construction and a pause in renewable credit purchases. Microsoft, Marvell, and Oracle formed an Open Compute Project working group on an integrated hardware security module, with a draft spec targeted around the OCP Global Summit. Fiscal Q1 2027 earnings are set for Oct 28 with consensus at $4.72 EPS on $90.4 billion revenue.

NVIDIA's share of China's data-center AI chip market fell to 34% in the first half of 2026, with shipments down 44% year over year as export controls and local alternatives bite, while Huawei climbed to 28%. SpaceX is reportedly seeking $40 billion in new debt from Apollo and banks to purchase NVIDIA GPUs, underscoring continued demand for its accelerators. NVIDIA agreed to buy minority stakes in four French startups — Doctolib, Genesis AI, Pigment, and Entalpic — announced by Jensen Huang in Paris, with terms undisclosed. Dan Ives named NVIDIA one of his top five 2027 tech picks with a $300 target. The stock rose, recovering some ground after four straight down sessions, though it remains below its 52-week peak.

NHTSA opened a defect petition review into reports that 2026 Model Y and Cybercab robotaxis exceed speed limits in active school zones, involving roughly 1,000 vehicles and four logged incidents with no crashes or injuries. BNP Paribas cut its price target to $266 and trimmed its 2026 sales estimate by 2%, citing Tesla's plan to spend more than $25 billion on capex this year and the resulting negative free cash flow. China domestic sales fell 11.9% through September while Giga Shanghai exports more than doubled, and Tesla paused orders for the Shanghai-built Model 3 Premium in Canada, saying its import quota was exhausted. Tesla rebranded 'Full Self-Driving' to 'Tesla Assisted Driving' on European sales sites, with the EU vote on wider approval pushed to December. The shares declined, leaving the stock well below its 52-week high ahead of Oct 21 earnings.