Key Takeaways
- Bank of America maintains Buy rating on META stock with $835 price target
- Analysts project Meta could develop approximately 19 gigawatts of AI compute capacity through 2030
- External monetization of 50% of that infrastructure could unlock $100B–$150B in fresh revenue streams
- META shares trade at $612, representing 18x 2027 earnings — a discount versus Google and Amazon
- Multiple analysts including Citizens, Mizuho, and Jefferies maintain bullish stances with $825–$835 targets
Meta Platforms (META) sits at $612 per share, yet Bank of America believes Wall Street is overlooking a significant infrastructure opportunity taking shape behind the scenes.
BofA’s Justin Post has reiterated his Buy recommendation on META shares with an $835 valuation, highlighting an emerging business opportunity: commercializing Meta’s AI computing infrastructure for third-party customers.
The concept is uncomplicated. Meta plans to allocate approximately $850 billion toward capital investments from 2026 through 2030. With each gigawatt of AI infrastructure costing roughly $45 billion, that capital outlay could produce around 19 gigawatts of total computing capability.
Should Meta monetize half of this capacity externally — pricing it at $10 billion to $15 billion per gigawatt — BofA’s analysis suggests revenue potential ranging from $100 billion to $150 billion.
That represents a substantial opportunity.
Post noted advancements in Meta’s proprietary MTIA chip and indicated that second-quarter revenue figures could reinforce investor confidence that the Muse Spark model rollout is translating into advertising momentum.
A more sophisticated large language model is anticipated in late 2026 or the first half of 2027, which BofA views as an additional catalyst for valuation multiple expansion.
The Risk Perspective
Not all observers embrace the optimistic scenario without reservations. If Meta intends to commercialize surplus computing resources, it prompts a legitimate concern: are the company’s internal AI initiatives requiring less capacity than originally anticipated?
Additionally, industry reports indicate Meta has been leasing computing resources from emerging cloud vendors while simultaneously exploring sales of its own infrastructure — a paradox that could pressure profit margins.
Establishing a profitable cloud operation presents significant challenges. Amazon and Google invested years before their cloud divisions achieved profitability. Without a distinct competitive advantage in pricing or technology, any cloud venture from Meta might initially operate with compressed margins.
Despite these mixed signals, BofA maintains its optimistic outlook.
Current Valuation Analysis
At today’s price levels, META commands an 18x multiple on 2027 earnings projections. This represents a compression from its 2025 peak of 26x and trades below the 24x multiples assigned to Google and Amazon. It substantially exceeds the 2022 low of 11x.
The current price-to-earnings ratio stands at 22.45. Top-line growth reached 26% over the trailing twelve-month period.
The Street’s consensus rating is Strong Buy — with 32 Buy recommendations, five Hold ratings, and zero Sell calls issued in the last three months. The mean price objective sits at $818.23, suggesting approximately 40% appreciation potential from present levels.
Citizens, Mizuho, and Jefferies have each recently reaffirmed constructive views, with price targets concentrated in the $825 to $835 range. Jefferies specifically referenced Amazon’s AWS playbook of commercializing surplus infrastructure — a strategy Meta appears positioned to mirror.
Options market activity surrounding META has intensified as well, with call option volume climbing following reports about the potential cloud business.
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