TLDR
- Bank of America kept its Buy rating on META with an $835 price target
- BofA estimates Meta could build ~19 gigawatts of AI computing capacity by 2030
- Selling half that capacity externally could generate $100B–$150B in new revenue
- META currently trades at $612, at 18x 2027 EPS — below Google and Amazon’s multiples
- Analysts from Citizens, Mizuho, and Jefferies have also reiterated positive ratings with targets of $825–$835
Meta Platforms (META) is trading at $612, and Bank of America thinks the market may be undervaluing what’s being built under the hood.
BofA analyst Justin Post reaffirmed a Buy rating on META stock with an $835 price target, pointing to a potential new business line: selling access to Meta’s AI computing infrastructure to outside customers.
The idea is straightforward. Meta is expected to spend roughly $850 billion on capital expenditures between 2026 and 2030. At an estimated cost of $45 billion per gigawatt of AI capacity, that spend could yield around 19 gigawatts of computing power.
If Meta sells access to half of that externally — at $10 billion to $15 billion per gigawatt — BofA says the math adds up to between $100 billion and $150 billion in potential revenue.
That’s not a small number.
Post also highlighted progress on Meta’s MTIA processor and suggested that Q2 revenue could give investors more confidence that the Muse Spark model launch is beginning to drive advertising growth.
A more advanced large language model is expected in late 2026 or early 2027, which BofA sees as another catalyst for multiple expansion.
The Risks Are Real
Not everyone is buying the upside story without caveats. If Meta is looking to sell spare computing capacity, it raises a fair question: are its own internal AI projects consuming less than expected?
There are also reports that Meta has been renting computing power from newer cloud providers at the same time it’s exploring selling its own — a dynamic that could weigh on margins.
Building a profitable cloud business is hard. Amazon and Google spent years getting their cloud divisions into the black. Without a clear cost or technology edge, any cloud offering from Meta could start as a lower-margin operation.
BofA acknowledged these conflicting signals but stayed bullish.
Where the Stock Stands
At current prices, META trades at 18x 2027 earnings per share. That’s below its 2025 peak multiple of 26x and below where Google and Amazon sit at 24x. It’s well above the 2022 trough of 11x.
The current P/E sits at 22.45. Revenue grew 26% over the last twelve months.
Wall Street’s consensus is a Strong Buy — 32 Buy ratings, five Holds, zero Sells over the past three months. The average price target is $818.23, implying around 40% upside from current levels.
Citizens, Mizuho, and Jefferies have all recently reiterated positive ratings, with targets clustered between $825 and $835. Jefferies drew a comparison to how Amazon built AWS by monetizing excess capacity — a model Meta could be looking to replicate.
Options activity in META has also picked up, with a rise in call volume following the cloud business reports.
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