Deutsche Bank Names Meta, ServiceNow Among Nine Top AI Picks as Meta's CapEx Surges

Deutsche Bank named Meta Platforms and ServiceNow among nine technology stocks positioned to lead the next phase of the AI trade, MarketWatch reported on Oct. 1, 2026. Analysts said targeting mega-cap names or generic chip exposure no longer defines the AI trade, favoring hardware value-chain positions and software firms monetizing AI agents. Meta reported second-quarter capital expenditures of $31.08 billion and raised the floor of its full-year capital expenditure range by $5 billion to $130 billion, with a ceiling of $145 billion. Full-year total expenses are projected between $165 billion and $169 billion. Net income fell to $15.85 billion from $18.34 billion a year earlier, as total costs and expenses rose 55% to $42.03 billion, including $2.40 billion in legal charges and $1.18 billion in severance. Free cash flow dropped to $784 million from $8.55 billion. Ad impressions rose 14% and average price per ad climbed 12%. Meta guided third-quarter revenue of $61 billion to $64 billion. Shares fell roughly 10% after hours.