Magnificent 7 stocks news, Oct 20, 2026

Morgan Stanley's Brian Nowak upgraded Amazon to top pick and raised his target to $350 from $335, lifting AWS revenue growth forecasts to 47% for 2027 and 42% for 2028 after Nvidia disclosed AWS will deploy roughly 2 million GPUs across those years. The stock closed essentially flat, holding the level reached in Monday's roughly 5% rally and sitting in the upper half of its 52-week range. Amazon released TorchNeuron, an open-source tool that lets PyTorch code run on its Trainium chips with minimal changes, read as a challenge to Nvidia's CUDA ecosystem. It also announced more than €16 billion of investment in Germany in 2027 and a joint development agreement with AEP and X-energy for a proposed 960 MW small modular reactor plant in Indiana. Q3 results are due Oct. 29, with capex forecasts of $355 billion for 2027 and $365 billion for 2028 still weighing on free cash flow.

A Google Cloud London-region outage disrupted UK banking services including Revolut and Lloyds, raising reliability questions as Alphabet courts financial-services cloud customers. Shares fell about 1% and remain well below the 52-week high ahead of the Oct. 28 report. BofA's Justin Post expects Q3 revenue of $111.4B and EPS of $3.07, above the Street, with Cloud growth of 93% versus 89% consensus on capacity and TPU sales. Post flagged earnings headwinds: UK app-developer and PriceRunner legal charges, SpaceX launch costs, and a 12% decline in SpaceX stock across Alphabet's roughly 551 million shares. A separate preview warned that updated capex guidance could push free-cash-flow margins negative, while the stock trades at 25.8x one-year forward earnings, above its long-term median.

Meta was the portfolio's weakest name, down about 1.6%, as investors weighed AI spending risk into Wednesday's Q3 report. Consensus calls for $63.3B revenue and $3.56 to $5.89 in EPS, with capex projected at $41B, up 117% year over year, and a $5.2B expected Reality Labs operating loss. Options markets imply a swing of more than $100B in market value around the print. Rosenblatt's Barton Crockett sees revenue near the top of the 19–25% guidance range at $63.94B and reads the absence of preliminary results as management confidence, while Citizens JMP maintained a bullish $885 forecast. On the product side, the Muse AI agent reached 10 million downloads in 40 days, faster than ChatGPT or Claude.

Microsoft pulled out as anchor tenant of Nscale's planned 50 MW AI data center in Loughton, Essex, after grid operators said sufficient power would not arrive until the early 2030s. More than 40% of Nscale's $103 billion in contracted revenue comes from Microsoft, and the company is now seeking replacement tenants ahead of a US IPO targeting up to a $30 billion valuation. Fortune reported that Xbox's Project Helix console has slipped to Holiday 2028 with an internal price projection of $1,200–$1,800, alongside three more planned rounds of Xbox layoffs in October, November and January. Morgan Stanley kept its $600 target but noted that improving sentiment and a higher valuation raise the bar, with over $50 billion of Q1 FY2027 capex to scrutinize. Shares edged down about 0.3%, leaving them up roughly 10% in 2026.

ByteDance, Alibaba and Tencent ordered more than 3 million RTX PRO 5500 workstation GPUs worth over $35 billion as an export-compliant substitute for restricted Blackwell B300 chips, with total Chinese orders reportedly exceeding 6 million units against a global 2027 production cap of about 3 million. Shares edged lower, extending a pullback of more than 9% over two weeks while still up roughly 15% for the year. At GTC Berlin on Oct. 20, Nvidia agreed a German government AI partnership with a nine-figure euro contribution as part of its broader European push. Anthropic is reportedly in talks with Nvidia-backed Nscale for an additional roughly $45 billion compute deal using Vera Rubin chips. Reporting also highlighted Amazon stockpiling GB300 racks with some sitting idle as 'dark GPUs', and Google's TorchTPU plus Amazon's TorchNeuron challenging Nvidia's default position in AI development workflows.

Tesla was the strongest holding, up about 1.5%, though the shares remain down for the year and roughly 29% below the 52-week high. Q3 results land Wednesday after the close with the call at 5:30 p.m. ET, consensus at about $28.06–28.36B revenue and roughly $0.44 adjusted EPS after four straight quarters of EPS misses. Q3 deliveries of 486,532 beat the roughly 462K consensus by more than 24,000 but fell 2.1% from the year-ago record, while energy storage of 13.7 GWh came in below the ~15.9 GWh expected. Speculation about a SpaceX–Tesla combination intensified, with Barclays suggesting a deal could be announced before the Dec. 3 annual meeting. Meanwhile the Austin Cybercab fleet grew to about 187 active units and Cantor's Andres Sheppard raised his Q3 revenue estimate to roughly $27.9B with a $485 target.