Key Takeaways
- BofA maintains Buy rating on META stock with price target of $835
- Analysts project Meta could develop approximately 19 gigawatts of AI computational power by decade’s end
- Monetizing 50% of that infrastructure externally could unlock $100B–$150B in additional revenue streams
- META shares currently priced at $612, trading at 18x forward 2027 earnings — a discount versus Google and Amazon
- Multiple Wall Street firms including Citizens, Mizuho, and Jefferies maintain bullish stances with $825–$835 targets
Meta Platforms (META) shares are hovering around $612, yet Bank of America believes Wall Street is overlooking a significant monetization opportunity hidden within the company’s infrastructure investments.
BofA’s Justin Post has reinforced his Buy recommendation on META shares with an $835 valuation target, spotlighting an emerging revenue stream: commercializing Meta’s artificial intelligence computing infrastructure for external enterprise clients.
The thesis centers on scale. Meta is projected to allocate approximately $850 billion toward capital investments spanning 2026 through 2030. With each gigawatt of AI computational capability requiring roughly $45 billion in infrastructure spending, this investment trajectory could deliver around 19 gigawatts of total capacity.
Should Meta commercialize just half of this computational power externally — commanding $10 billion to $15 billion per gigawatt in the marketplace — BofA’s analysis suggests a revenue opportunity ranging from $100 billion to $150 billion.
That represents a meaningful new business vertical.
Post’s analysis also acknowledged advancements in Meta’s proprietary MTIA chip technology and indicated that second-quarter earnings could validate whether the Muse Spark AI model is successfully translating into advertising revenue acceleration.
The firm anticipates a more sophisticated large language model deployment in the latter half of 2026 or early 2027, which could serve as another catalyst for valuation expansion.
Headwinds and Uncertainties
Skepticism remains warranted. If Meta is positioning itself to lease surplus computing resources, it naturally prompts questions about whether internal AI initiatives are underperforming initial capacity projections.
Additionally, recent reporting indicates Meta has simultaneously been leasing computational resources from emerging cloud infrastructure providers while exploring external sales opportunities — a contradiction that could compress profit margins.
Establishing a profitable cloud infrastructure division presents substantial challenges. Amazon and Google each required years before their cloud segments achieved sustained profitability. Without demonstrable cost advantages or technological differentiation, Meta’s cloud venture could initially operate on thinner margins.
Despite these mixed signals, BofA’s outlook remains constructive.
Current Valuation Context
At present valuations, META stock trades at 18x projected 2027 earnings. This represents a compression from its 2025 peak multiple of 26x and trades at a discount compared to Google and Amazon’s 24x forward multiples. The current ratio remains substantially above 2022’s trough level of 11x.
The trailing twelve-month P/E ratio stands at 22.45, with revenue expansion of 26% year-over-year.
Wall Street consensus strongly favors the upside — 32 Buy recommendations, five Hold ratings, and zero Sell calls over the trailing three months. The mean analyst price target sits at $818.23, suggesting approximately 40% appreciation potential from current trading levels.
Recent reiterations from Citizens, Mizuho, and Jefferies all maintain constructive views, with price objectives concentrated in the $825–$835 range. Jefferies specifically referenced Amazon’s AWS playbook of monetizing overcapacity as a potential roadmap Meta could follow.
Derivatives markets are also reflecting heightened interest, with call option volume increasing following disclosure of the cloud infrastructure monetization strategy.
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