BofA Securities Reiterates Buy on Meta, $810 PT
BofA Securities analyst Justin Post reiterated a Buy rating and $810 price target on Meta Platforms Inc. (NASDAQ: META).
“Per Bloomberg, Meta plans to deploy its third-generation MTIA 450 chips, or Arke, in 1H’27, followed by higher-performance MTIA 500, or Astrid, beginning in late 2027.
Developed with Broadcom, the custom chips are purpose-built for AI inference & designed to improve compute efficiency.
Meta expects to deploy more than 1 GW of custom-chip capacity over 12 months, with adoption accelerating thereafter.
The report also noted that the company considered developing a chip capable of handling both AI training and inference.
However, Meta canceled the project after determining that the design could cost approximately 30% more, limiting its economic viability at scale.
Our Take: Given Alphabet’s success with TPUs, we think custom silicon remains strategically important for Meta’s AI roadmap, with the potential to significantly lower long-term AI infrastructure costs and improve returns on capex.
If we assume Meta is planning to deploy 5-6GW of owned capacity in 2027 at a cost of $200bn, and chips are 60% of the cost, then deploying own custom chips (assuming a 40% cost savings vs 3rd party chips) could generate ~8.5bn cost savings.”
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.
This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.
