BofA Securities Reiterates Buy on Meta, $835 Price Target

BofA Securities analyst Justin Post reiterated a Buy rating and $835 price target on Meta Platforms Inc. (NASDAQ: META).

“According to an internal memo reviewed by Reuters, Meta is building a custom silicon chip as part of a broader effort to add 14GW of total compute capacity in 2026 & 2027.

The memo noted that Meta has deployed 1GW of capacity so far in 2026 and expects to deploy 5.5GW in 2H’26.

If these GW estimates are accurate, they would suggest a 2026 cost per GW on ($145bn on capex) of closer to $22bn, vs our $45bn/GW estimate for 2026.

Our Take: The 6.5MW 2026 capacity growth in the memo is well above BofAe at 2.6GW, and if 2026 capacity estimates in the memo are even close to accurate, Meta may have engineered significant cost savings to get capacity cost per MW well below our and Street expectations.

Not all capacity is built the same, but we think building MW of AI capacity at below $30bn per GW could have significant positive economics relative to our estimates for Amazon and Google annual Cloud revenues per GW at $10-16bn or recent SpaceX capacity deals that could range from $40-50bn per year per GW.”

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