Major U.S. Averages Mostly Unchanged Near Noon
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 30 2025
0mins
Should l Buy META?
The major averages were mostly unchanged near noon on the penultimate trading day of the year as markets contend with light year-end volumes and a pullback in heavyweight tech and AI names that stalled last week's strong rally. Investors are also awaiting the release of the Federal Reserve's December meeting minutes and digesting recent economic signals that have fueled debate over the pace of future rate cuts.Looking to commodities, gold edged higher following yesterday's sharp losses, while oil is fractionally higher ahead of the API crude numbers set for release this afternoon.Get caught up quickly on the top news and calls moving stocks with this Midday Fly By.1. STOCK NEWS:Meta PlatformsAI startup Manus, with the Wall Street Journal reporting that Meta is paying over $2B for the businessApplied Digitalits cloud computing business with Ekso BionicsOn24by Cvent for $8.10 per share in cashCiti'sboard approved a plan to2. WALL STREET CALLS:ArgusBHP Groupto Buy on "firming" commodity pricesMereo BioPharmato Hold at JefferiesBenchmarkLindblad Expeditionswith a Buy on high growth visibilityStephensof Rubrik, Commvault, and AvePointwith Overweight ratings and Varonisat Equal Weight3. AROUND THE WEB:SMICintends to acquire the remaining 49% stake in unit SMNC for Y40.6B, or $5.79B, giving the company full control of the subsidiary,The U.S. government has granted Samsung Electronicsand SK Hynixan annual license to bring chip manufacturing equipment to their Chinese facilities for 2026,Power-hungry AI projects are benefiting Caterpillaras a range of customers looks to purchase the company's engines and generators,Softbankhas completed its $40B investment in OpenAI,Warner Bros. Discoveryis expected to reject the latest offer made by Paramount Skydance,4. MOVERS:Hycroft Miningincreases after filing aBoeinggains after being awarded afor the F-15 Israel Program and a ceiling $4.2B modification to a previously awarded Air Force contract for E-4B contractor logistic serviceEnergy Fuelsfalls after Roth Capital said shares of the companyTruth Medialower after Yorkville America launchedon the New York Stock Exchange5. EARNINGS/GUIDANCE:Ree Automotive, with EPS higher year-over-yearEtoiles CapitalCemtrexreported, with revenue higher year-over-yearAMTD IDEA Groupreported, with CFO Xavier Zee commenting, "We are proud to deliver another half year of strong performance"INDEXES:Near midday, the Dow was down 0.20%, or 98.77, to 48,363.16, the Nasdaq was down 0.04%, or 9.76, to 23,464.59, and the S&P 500 was down 0.06%, or 3.88, to 6,901.86.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy META?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on META
Wall Street analysts forecast META stock price to rise
44 Analyst Rating
37 Buy
6 Hold
1 Sell
Strong Buy
Current: 655.080
Low
655.15
Averages
824.71
High
1117
Current: 655.080
Low
655.15
Averages
824.71
High
1117
About META
Meta Platforms, Inc. is building human connections, powered by artificial intelligence and immersive technologies. The Company's products enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality (VR) and mixed reality (MR) headsets, augmented reality (AR), and wearables. It also helps people discover and learn about what is going on in the world around them, enabling people to share their experiences, ideas, photos, videos, and other content with audiences ranging from their closest family members and friends to the public at large. The Company's segments include Family of Apps (FoA) and Reality Labs (RL). FoA segment includes Facebook, Instagram, Messenger, WhatsApp and Threads. RL segment includes its virtual, augmented, and mixed reality related consumer hardware, software and content. Its product offerings in VR include its Meta Quest devices, as well as software and content available through the Meta Horizon Store.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Meta Abandons Custom Chip Development, Intensifying AI Competition
- Meta's Chip Development Failure: Meta has scrapped its most advanced custom AI chip development, highlighting the significant design challenges it faces, which diminishes its competitive edge in training AI models despite collaboration with Broadcom.
- Amazon's AI Strategy: Amazon plans to develop AI models using its custom chips, which could significantly reduce costs; however, its substantial investments of $50 billion in OpenAI and Anthropic indicate a diversified approach in the AI sector.
- Alphabet's Technological Edge: Alphabet's Tensor Processing Units (TPUs) have reached their seventh generation and have been battle-tested over a decade, making them the preferred choice for several AI companies, underscoring Alphabet's leading position in the AI chip market.
- Capital Expenditure Plans: Alphabet intends to allocate $175 billion to $185 billion for capital expenditures related to AI data centers, demonstrating its long-term commitment to AI investment while indicating a cost advantage over competitors relying on Nvidia's GPUs.
See More
Trump Pushes Tech Firms for Self-Powered AI Data Centers
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
See More
Nvidia Reports Strong Earnings but Stock Drops
- Strong Earnings Report: Nvidia reported an adjusted earnings per share of $1.62 and revenue of $68.1 billion for Q4 FY2026, both exceeding Wall Street's expectations of $1.53 and $66.2 billion, indicating robust market performance and profitability.
- Optimistic Guidance: The management guided for approximately $78 billion in revenue for the current quarter, significantly above the analyst consensus of $72.6 billion, showcasing the company's ongoing growth potential in the AI sector, although this does not include potential sales from China.
- Stable Gross Margins: Nvidia achieved a 75.2% adjusted gross margin in the recent quarter and expects about 75% for the full year, demonstrating strong pricing power and enhancing investor confidence in its profitability.
- Conflicted Market Reaction: Despite the strong performance, Nvidia's stock fell by 5.5% post-earnings, reflecting market uncertainty regarding future AI investment returns, particularly as major tech firms may slow capital expenditures amid rising costs and economic concerns.
See More
Broadcom Beats Estimates but Shares Decline
- Consistent Outperformance: Broadcom has beaten analyst EPS estimates for 19 consecutive quarters; however, following Nvidia's strong earnings report, Broadcom's shares fell 6%, indicating a diminishing market reaction to earnings beats.
- Optimistic Market Predictions: Polymarket gives a 96% chance that Broadcom will report a non-GAAP EPS of $2.02, with Wall Street expecting revenue of $19.18 billion, a 29% year-over-year increase that would set a new quarterly record.
- Significant Capital Expenditure Increase: Both Broadcom and Nvidia plan to significantly ramp up capital spending, with Broadcom's next-generation AI networking switch, “Tomahawk 6,” seen as critical for enhancing data transfer speeds to meet the demands of scaling AI training clusters.
- Acquisition Risk Concerns: Broadcom's $69 billion acquisition of VMware is still being digested, with UBS flagging customer churn risks; speculation on whether Broadcom will mention new acquisitions could impact investor confidence.
See More
Latest Ratings and Price Targets on Wall Street
- nLIGHT Coverage Initiation: Baird initiates coverage of nLIGHT with an Outperform rating and a $95 price target, citing favorable market trends and robust funding that support growth, particularly enhanced by the company's vertical integration and technological strengths.
- Apple's New Product Launch: Oppenheimer reiterates Apple as Perform, highlighting the new MacBook Pro lines powered by M5 Pro and M5 Max chips, which signify a new era of local AI computing and reinforce Apple's significant lead in efficiency and scalability in personal computing devices.
- PulteGroup and Toll Brothers Ratings: Truist initiates PulteGroup and Toll Brothers with Buy ratings, setting a price target of $170, as they believe the market is significantly undervaluing both companies' profitability potential, especially in the context of a recovering luxury housing market.
- Tesla and General Motors Upgrades: Bank of America upgrades Tesla to Buy with a $460 price target, viewing it as the leader in consumer autonomy, while reinstating General Motors as Buy, expecting benefits from lower warranty costs and regulatory credits.
See More
Trump Advocates for Tech Firms to Generate Their Own Power
- Power Cost Commitment: The Trump administration has introduced the 'Ratepayer Protection Pledge' aimed at preventing households and small businesses from facing higher utility bills due to the high energy consumption of data centers, reflecting a focus on energy affordability.
- Tech Company Responsibility: Trump urges major tech firms like Google and Meta to build their own power plants to meet their energy needs, thereby alleviating pressure on public grids and potentially leading to lower electricity prices for communities.
- Surging Power Demand: The rapid expansion of AI infrastructure has sharply increased electricity demand from data centers in the U.S., with the Department of Energy warning that without new power capacity, power outages could double by 2030.
- Political Implications: With midterm elections approaching, energy affordability has become a key concern for voters, and Trump's initiative may influence public perception of tech companies and their role in energy policy.
See More
Meta Abandons Custom Chip Development, Intensifying AI Competition
- Meta's Chip Development Failure: Meta has scrapped its most advanced custom AI chip development, highlighting the significant design challenges it faces, which diminishes its competitive edge in training AI models despite collaboration with Broadcom.
- Amazon's AI Strategy: Amazon plans to develop AI models using its custom chips, which could significantly reduce costs; however, its substantial investments of $50 billion in OpenAI and Anthropic indicate a diversified approach in the AI sector.
- Alphabet's Technological Edge: Alphabet's Tensor Processing Units (TPUs) have reached their seventh generation and have been battle-tested over a decade, making them the preferred choice for several AI companies, underscoring Alphabet's leading position in the AI chip market.
- Capital Expenditure Plans: Alphabet intends to allocate $175 billion to $185 billion for capital expenditures related to AI data centers, demonstrating its long-term commitment to AI investment while indicating a cost advantage over competitors relying on Nvidia's GPUs.
See More
Trump Pushes Tech Firms for Self-Powered AI Data Centers
- Self-Power Commitment: Trump is set to sign an agreement with major tech firms like Amazon, Google, and Meta, mandating them to supply their own power for AI data centers, addressing rising public anger over electricity prices, although the specifics of the commitment remain unclear.
- Rising Electricity Pressure: Average residential electricity prices in the U.S. increased by 6% in 2025, contrasting Trump's promise to halve prices during his term, highlighting the government's challenges in controlling energy costs, which could impact his support in the midterm elections.
- Implementation Challenges: The decentralized nature of electric grid regulations across states poses significant hurdles for the Trump administration in converting the pledge into actionable policy, with experts indicating that new federal legislation is necessary to address power supply shortages.
- Increased Political Pressure: Trump is leveraging his political influence to pressure tech companies into absorbing the costs associated with their data centers, despite the complexities arising from state-level regulation of power generation, which may complicate policy implementation.
See More
Nvidia Reports Strong Earnings but Stock Drops
- Strong Earnings Report: Nvidia reported an adjusted earnings per share of $1.62 and revenue of $68.1 billion for Q4 FY2026, both exceeding Wall Street's expectations of $1.53 and $66.2 billion, indicating robust market performance and profitability.
- Optimistic Guidance: The management guided for approximately $78 billion in revenue for the current quarter, significantly above the analyst consensus of $72.6 billion, showcasing the company's ongoing growth potential in the AI sector, although this does not include potential sales from China.
- Stable Gross Margins: Nvidia achieved a 75.2% adjusted gross margin in the recent quarter and expects about 75% for the full year, demonstrating strong pricing power and enhancing investor confidence in its profitability.
- Conflicted Market Reaction: Despite the strong performance, Nvidia's stock fell by 5.5% post-earnings, reflecting market uncertainty regarding future AI investment returns, particularly as major tech firms may slow capital expenditures amid rising costs and economic concerns.
See More
Broadcom Beats Estimates but Shares Decline
- Consistent Outperformance: Broadcom has beaten analyst EPS estimates for 19 consecutive quarters; however, following Nvidia's strong earnings report, Broadcom's shares fell 6%, indicating a diminishing market reaction to earnings beats.
- Optimistic Market Predictions: Polymarket gives a 96% chance that Broadcom will report a non-GAAP EPS of $2.02, with Wall Street expecting revenue of $19.18 billion, a 29% year-over-year increase that would set a new quarterly record.
- Significant Capital Expenditure Increase: Both Broadcom and Nvidia plan to significantly ramp up capital spending, with Broadcom's next-generation AI networking switch, “Tomahawk 6,” seen as critical for enhancing data transfer speeds to meet the demands of scaling AI training clusters.
- Acquisition Risk Concerns: Broadcom's $69 billion acquisition of VMware is still being digested, with UBS flagging customer churn risks; speculation on whether Broadcom will mention new acquisitions could impact investor confidence.
See More
Latest Ratings and Price Targets on Wall Street
- nLIGHT Coverage Initiation: Baird initiates coverage of nLIGHT with an Outperform rating and a $95 price target, citing favorable market trends and robust funding that support growth, particularly enhanced by the company's vertical integration and technological strengths.
- Apple's New Product Launch: Oppenheimer reiterates Apple as Perform, highlighting the new MacBook Pro lines powered by M5 Pro and M5 Max chips, which signify a new era of local AI computing and reinforce Apple's significant lead in efficiency and scalability in personal computing devices.
- PulteGroup and Toll Brothers Ratings: Truist initiates PulteGroup and Toll Brothers with Buy ratings, setting a price target of $170, as they believe the market is significantly undervaluing both companies' profitability potential, especially in the context of a recovering luxury housing market.
- Tesla and General Motors Upgrades: Bank of America upgrades Tesla to Buy with a $460 price target, viewing it as the leader in consumer autonomy, while reinstating General Motors as Buy, expecting benefits from lower warranty costs and regulatory credits.
See More
Trump Advocates for Tech Firms to Generate Their Own Power
- Power Cost Commitment: The Trump administration has introduced the 'Ratepayer Protection Pledge' aimed at preventing households and small businesses from facing higher utility bills due to the high energy consumption of data centers, reflecting a focus on energy affordability.
- Tech Company Responsibility: Trump urges major tech firms like Google and Meta to build their own power plants to meet their energy needs, thereby alleviating pressure on public grids and potentially leading to lower electricity prices for communities.
- Surging Power Demand: The rapid expansion of AI infrastructure has sharply increased electricity demand from data centers in the U.S., with the Department of Energy warning that without new power capacity, power outages could double by 2030.
- Political Implications: With midterm elections approaching, energy affordability has become a key concern for voters, and Trump's initiative may influence public perception of tech companies and their role in energy policy.
See More
