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Jefferies has revised target prices for major technology stocks as Wall Street reviews the latest Big Tech earnings and artificial intelligence spending plans. The firm raised Alphabet’s target price from $400 to $445. However, it lowered Meta’s target from $1,000 to $825 and cut Microsoft’s target from $675 to $575.
The changes came as investors focused on whether large AI and data center budgets are driving revenue growth. Alphabet, Amazon, and Apple gained support after recent results. Meanwhile, Meta and Microsoft faced pressure as the market questioned their spending plans.
Jim Cramer said the latest Big Tech earnings showed that AI spending remains central to growth. In a CNBC analysis, he rejected claims that heavy data center investment has become a market bubble.
“I am growing tired of the endless bubble talk about all of the data center spending,” Cramer wrote. He added, “This was the quarter where we realized that if you didn’t spend, you were already behind the 8-ball.”
Cramer pointed to gains in Alphabet, Amazon, and Apple as examples of companies being rewarded by investors. Over the past five days, Alphabet Class A shares rose 11.32% to $385.69, while Class C shares gained 11.43% to $383.22.
Apple also advanced 5.43% to $280.25 during the same period. Amazon rose 1.69% to $268.42, supported by stronger cloud growth and demand linked to AI services.
Alphabet drew strong market attention after reporting growth in Google Cloud and wider use of Gemini AI products. Its shares jumped 10% on Thursday after earnings, pushing its 2026 gain to 23%.
The stock has become the largest point contributor to the S&P 500’s gain this year. Jefferies’ higher target price for Alphabet also reflected a stronger view of the company’s market position.
Amazon also gained after its cloud unit posted the fastest quarterly sales growth in more than three years. Investors viewed that performance as a sign that AI demand continues to support cloud revenue.
Apple rose after forecasting revenue growth of up to 17% in the current quarter. Cramer said Apple has room to gain despite spending less on data centers because of its large user base and partnership options.
Meta fell 9.44% over five days to $608.74 after investors questioned its rising capital spending. The company posted strong results, but the market reacted to higher costs tied to AI infrastructure.
Cramer said Meta faces more pressure because it does not have a cloud business like Amazon, Alphabet, or Microsoft. “So far the ‘Trust in Mark Zuckerberg’ view is not paying off,” he wrote.
Microsoft also declined 1.74% over five days to $414.20. Its shares dropped nearly 4% on Thursday after the company projected 2026 capital spending of $190 billion.
The spending outlook overshadowed expectations for stronger Azure cloud revenue. Investors also questioned whether Microsoft’s AI investments are producing enough product leadership against rivals such as Google.
“If you’re borrowing to continue putting money into AI data centers and chips and so forth, you’re being punished,” said Bob Savage, head of markets macro strategy at BNY. “If you have the cash and you are making good money from the investments, you’re being rewarded.”
Moreover, the recent earnings showed that investors are no longer treating all AI spending the same way. Companies linking spending to revenue growth gained support, while firms facing cost doubts saw weaker stock performance.
Also Read: Meta Stock Hits $680: Strong Growth Pushes Tech Giant Higher
