Key Takeaways
- Bank of America maintains Buy rating on META stock with price target of $835
- Analysts project Meta may develop approximately 19 gigawatts of AI compute infrastructure by 2030
- Monetizing 50% of that capacity externally could unlock $100B–$150B in additional revenue
- META shares currently priced at $612, trading at 18x forward 2027 earnings — a discount to Google and Amazon
- Multiple firms including Citizens, Mizuho, and Jefferies maintain bullish stances with price targets ranging from $825–$835
Meta Platforms (META) shares are hovering around $612, but Bank of America analysts believe Wall Street may be overlooking a significant value driver taking shape behind the scenes.
BofA’s Justin Post has renewed his Buy recommendation on META stock with an $835 price objective, highlighting an emerging opportunity: commercializing Meta’s massive AI computing infrastructure to external clients.
The concept is relatively simple. Meta plans to allocate approximately $850 billion toward capital investments from 2026 through 2030. With each gigawatt of AI infrastructure costing an estimated $45 billion, this investment trajectory could produce roughly 19 gigawatts of total computing capability.
Should Meta choose to monetize half of this capacity through external sales — pricing each gigawatt between $10 billion and $15 billion — BofA’s analysis suggests potential revenue ranging from $100 billion to $150 billion.
That represents a substantial new revenue stream.
Post also noted advancements in Meta’s proprietary MTIA chip technology and indicated that second-quarter revenue figures might reinforce investor confidence that the Muse Spark model rollout is positively impacting advertising performance.
The firm anticipates a more sophisticated large language model debut between late 2026 and early 2027, which could serve as another catalyst for valuation multiple expansion.
Potential Challenges Shouldn’t Be Ignored
Not all observers are fully convinced of the upside narrative without reservations. If Meta intends to commercialize surplus computing resources, it naturally prompts the question: are its internal AI initiatives requiring less infrastructure than originally anticipated?
Additionally, emerging reports indicate Meta has been leasing computational power from third-party cloud providers while simultaneously exploring its own capacity sales — a situation that could pressure profit margins.
Establishing a profitable cloud infrastructure business presents significant challenges. Amazon and Google each invested years before their cloud divisions achieved profitability. Without demonstrable cost advantages or technological differentiation, any cloud service from Meta might initially operate with narrower margins.
Despite these mixed signals, BofA maintains its optimistic outlook.
Current Valuation Analysis
At present levels, META stock trades at 18x projected 2027 earnings. This represents a decline from the 26x multiple reached in 2025 and sits below the 24x multiples currently assigned to Google and Amazon. However, it remains significantly above the 11x trough experienced in 2022.
The trailing twelve-month P/E ratio stands at 22.45. Revenue expanded 26% year-over-year.
The Street consensus reflects a Strong Buy rating — comprising 32 Buy recommendations, five Hold ratings, and zero Sell ratings over the past quarter. The mean price objective sits at $818.23, suggesting approximately 40% appreciation potential from current trading levels.
Citizens, Mizuho, and Jefferies have each recently affirmed bullish outlooks, with price targets concentrated in the $825 to $835 range. Jefferies specifically drew parallels to Amazon’s AWS development strategy, where the company successfully monetized surplus infrastructure capacity — a blueprint Meta appears positioned to follow.
Options market activity surrounding META has intensified recently, with notable increases in call option volume coinciding with cloud business speculation.
