Meta’s AI Spending Shows ‘Clearest Signs’ Of Payoff Yet, TD Cowen Says — Muse Revenue Seen At $27B By 2031

According to TheFly, TD Cowen raised its Meta forecasts after Connect 2026, arguing that Muse’s integration across new consumer devices is creating a clearer path from AI investment to revenue.

• TD Cowen raised Meta’s price target to $865 from $750 and increased its revenue, EBITDA, and earnings estimates.
• The firm expects worldwide Muse revenue to climb from $55 million in 2026 to $1.8 billion next year.
• TD Cowen called Meta’s new audio glasses and Muse Charm the “clearest signs to date” of potential returns from its ongoing AI investment.

Meta Platforms Inc.’s (META) heavy artificial intelligence spending is showing its “clearest signs to date” of a potential payoff, according to TD Cowen, which raised its forecasts after Meta Connect 2026 and sees Muse developing into a multibillion-dollar revenue business.

According to TheFly, TD Cowen raised its META stock price target to $865 from $750 while maintaining a ‘Buy’ rating on the stock. 

The firm also increased its revenue, earnings before interest, taxes, depreciation and amortization (EBITDA), and earnings estimates following the event.

TD Cowen Sees Muse Revenue Scaling Rapidly

At the center of TD Cowen’s thesis is Muse, which the firm called Meta’s clearest potential return on AI investment outside its core business.

The firm estimates worldwide Muse revenue will grow from $55 million this year to $1.8 billion in 2027, then reach $27 billion in 2031, according to The Fly.

Connect provided a clearer picture of how Meta plans to put Muse in front of consumers across more devices. Meta said the personal AI agent is coming to its AI glasses in the coming months, allowing users to interact with Muse hands-free and have the agent act on what they are looking at.

Meta also unveiled Muse Charm, a pocket-sized device built around a real-time voice model for interacting with the agent. The company said it will share more details later this year.

Hardware Creates More Touchpoints For Muse

Meta also introduced Ray-Ban Meta Audio, its first audio glasses, while expanding its broader wearable lineup. The company expects to have more than 100 AI-glasses options across Ray-Ban, Oakley and Meta Glasses by year-end.

Those announcements underpin TD Cowen’s view that Meta is beginning to show a clearer link between its AI investment and products that could eventually generate revenue beyond its existing businesses.

The potential economic impact of Muse is also drawing attention beyond Meta. HSBC downgraded Twilio (TWLO) to ‘Reduce’ from ‘Hold’ with a $211 target after the stock gained 30% following Muse’s Sept. 8 launch, according to The Fly.

HSBC agreed that AI agents could increase volumes for calls, messages and authentications, but argued Meta’s own AI voice stack could limit how much of that incremental value ultimately flows to Twilio.

Retail Sentiment Around META Stock

Meta’s Muse became a major AI catalyst this week, with strong early adoption and Meta Connect updates boosting enthusiasm around agentic AI. On Stocktwits, retail investor sentiment around META stock remained ‘bullish’ amid ‘high’ message volume. 

Meta stock has risen nearly 14% in just the last five days, the best-performing Mag 7 stock. Year to date, Meta shares rallied more than 17%. In comparison, the State Street Communication Services Select Sector SPDR ETF (XLC), which holds the stock, has fallen around 2.5% over the same period.

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