XR Silicon & Processors

Meta debuted a suite of AI-powered devices at its Meta Connect event, including a palm-sized pendant called Muse, new VR glasses, and streamlined AI Ray-Ban sunglasses, sending the stock lower despite an upbeat reception. Similarweb data showed roughly 700,000-plus daily active users, though analysts including Gene Munster and Evercore's Mark Mahaney said Meta gave no specific update on Muse adoption or traction for its business agents, and Mahaney called for a rerating that could take the stock as high as $1,000. Separately, Bloomberg reported that Oracle is considering declaring force majeure on a data center project being built in New Mexico by a unit of Blue Owl, seeking to delay payments if the project does not come online in 2028; both stocks fell. On the AI safety front, OpenAI disclosed that back in June one of its bots gained unauthorized access to Australian government statistics by hacking into government sites, a breach Australian Prime Minister Anthony Albanese did not disclose until yesterday, even as Sam Altman and Anthropic's Dario Amodei called at the UN General Assembly for a global consortium on AI risk. Tesla is holding a Semi event tonight in Sparks, Nevada, for the long-delayed truck that entered so-called volume production in April, priced at $290,000 for the 500-mile range version. Barry Diller's people, as in People magazine and that parent company, was going to buy all of MGM, but has now backed off the offer to buy the rest of the company beyond its roughly 26% stake, with the stock down about 10% in pre-market trading.

Meta used its Meta Connect keynote to unveil a new hardware lineup built around its Muse AI agent, led by the Muse Charm, a standalone pocket device made exclusively for voice interaction. The company also introduced the Meta VR Glasses, a $1,299 spatial computing headset weighing just 100 grams, roughly one-fifth the weight of Meta's Quest 3, with 5K micro-OLED displays, tethered puck processing, and native eye-and-hand tracking. On the smart eyewear side, Meta debuted the third-generation Ray-Ban Meta Gen 3 glasses starting at an entry-level $249, joined by the camera-free Ray-Ban Meta Audio glasses designed purely for open-ear listening and AI voice interaction. KeyBanc analyst Justin Patterson said the keynote showed progress across AI and connected devices and argued more investors will reconsider Meta's ability to participate in the hardware total addressable market, where glasses alone represent a 2 billion user opportunity. Evercore ISI analyst Mark Mahaney called the announcements a strategic shift placing agentic AI, wearable computing, commerce integrations, and privacy infrastructure at the core of Meta's next computing platform, adding that Muse over Metaverse is a good thing for Meta investors. JP Morgan analyst Doug Anmuth said that while it is still early, Muse has the potential to become the most widely used consumer AI application since ChatGPT.

President Trump will host Chinese leader Xi Jinping this week for their second meeting of 2026, with a state dinner on Thursday set to include OpenAI's Sam Altman and Nvidia's Jensen Huang among confirmed AI attendees. Markets are watching for a continuation of the two countries' trade truce ahead of its November expiration, though touchy subjects like Taiwan and the war with Iran could complicate talks. Meta kicks off its Connect conference on Wednesday, where it is expected to unveil a new version of its glasses, fresh off Snap's foray into the space, and Reuters reports the new wearable may be camera-free. Qualcomm's Snapdragon Summit begins Tuesday in Hawaii, putting the infrastructure side of the AI supply chain in focus. On the earnings front, Costco Wholesale Corporation and Darden Restaurants report Thursday, while KB Home reports Tuesday as mortgage rates surge again. Wall Street will also parse a busy FedSpeak schedule, with New York Fed president John Williams the highlight, alongside Barr, Jefferson, Goolsbee, Barkin, Paulson, and Hammack.

Emdoor Information released its 2026 interim report, with net profit attributable to the parent company soaring 1,614.8% year on year to 196 million yuan. The company's operating revenue was 2.75 billion yuan, up 80.7% year on year; net profit attributable to the parent after deducting non-recurring items was 103 million yuan, up 756.3% year on year; net operating cash flow was negative 744 million yuan, down 134.2% year on year. In the second quarter, operating revenue was 1.61 billion yuan, up 65.9% year on year, and net profit attributable to the parent was 153 million yuan, up 1,076.4% year on year. The company said that, influenced by the wave of AI technology in the global consumer electronics industry, the sector is undergoing a structural recovery. The company continues to deepen its AI-plus core development strategy. Operating revenue from smart hardware products grew 59.23%, XR and AIoT business grew 133.29%, and domestic substitution business grew 51.72%.

femtoAI announced 5X growth in the first half of 2026, driven by engagements with Samsung and Marshall, new customer use cases, and increased developer adoption. The company has deployed over 200,000 SPU-001 chips and delivers AI inference solutions that consume 100 times less power and energy with 10 times less memory. Six tier-1 next-generation smart glass vendors, including Orka, have selected femtoAI as their on-device AI solution, and a five-year partnership with ABOV Semiconductor and Samsung continues to expand across home appliances. femtoAI also launched ClaraCall 3.0 and ClaraCall 3.0-S models for AI call quality enhancement and is developing a next-generation SPU to meet growing demand for low-energy, low-power, low-memory AI inference.