Key Takeaways
- BofA maintains Buy rating on META stock with $835 price target
- Meta projected to develop approximately 19 gigawatts of AI infrastructure by 2030
- External monetization of half this capacity could yield $100B–$150B in fresh revenue
- META shares currently at $612, trading at 18x 2027 earnings — beneath Google and Amazon valuations
- Multiple firms including Citizens, Mizuho, and Jefferies maintain bullish outlooks with $825–$835 targets
Meta Platforms (META) sits at $612 per share, yet Bank of America believes Wall Street hasn’t fully priced in the company’s emerging opportunities.
Justin Post, analyst at BofA, has maintained his Buy recommendation on META shares with an $835 valuation, highlighting an emerging business avenue: commercializing Meta’s AI infrastructure to third-party customers.
The concept is simple yet significant. Meta plans capital investments totaling approximately $850 billion from 2026 through 2030. With each gigawatt of AI computing infrastructure costing roughly $45 billion, this investment trajectory could deliver around 19 gigawatts of total capacity.
Should Meta commercialize half this capacity externally — pricing it between $10 billion and $15 billion per gigawatt — BofA’s analysis suggests revenue potential ranging from $100 billion to $150 billion.
That represents substantial upside.
Post further noted advancements in Meta’s MTIA chip technology and indicated that second-quarter revenue figures might strengthen investor confidence that the Muse Spark model rollout is accelerating advertising performance.
A next-generation large language model anticipated for late 2026 or early 2027 represents another potential driver for valuation expansion, according to BofA.
Potential Headwinds Exist
Not all market observers embrace this optimistic narrative without reservations. If Meta intends to commercialize excess computing resources, it prompts a legitimate concern: is internal AI demand falling short of projections?
Additionally, emerging reports indicate Meta has leased computational resources from third-party cloud providers while simultaneously exploring selling its own capacity — a contradiction that could pressure profit margins.
Establishing a lucrative cloud platform presents significant challenges. Amazon and Google invested years before their cloud divisions achieved profitability. Without distinct cost advantages or technological differentiation, Meta’s cloud venture might initially operate with compressed margins.
Despite these contradictory indicators, BofA maintains its optimistic stance.
Current Valuation Metrics
At present levels, META trades at 18x projected 2027 earnings. This represents a decline from its 2025 peak multiple of 26x and trails both Google and Amazon at 24x. However, it remains substantially above the 2022 low of 11x.
The current price-to-earnings ratio stands at 22.45. Revenue expanded 26% over the trailing twelve months.
Wall Street consensus points to a Strong Buy — with 32 Buy recommendations, five Hold ratings, and zero Sell ratings over the past quarter. The mean price target reaches $818.23, suggesting approximately 40% appreciation from current valuation.
Citizens, Mizuho, and Jefferies have each recently reaffirmed bullish positions, with price objectives concentrated in the $825 to $835 range. Jefferies specifically referenced Amazon’s AWS development as a comparable scenario — where excess infrastructure was successfully monetized — a blueprint Meta may be following.
Options trading activity surrounding META has intensified, with call option volume increasing following disclosure of potential cloud business initiatives.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
