Analyst cites potential AI and cloud infrastructure investments as key drivers for Meta Platforms’ long-term revenue growth.
Bank of America maintained its Buy rating on Meta Platforms (META) with an $835 price target, citing the company’s potential to generate new revenue through AI and cloud services. Analyst Justin Post highlighted Meta’s ability to build significant computing power, with Wall Street projecting $850 billion in capital expenditures between 2026 and 2030.
The firm noted that constructing one gigawatt of AI capacity could cost $45 billion, enabling Meta to develop approximately 19 gigawatts. However, challenges remain, as cloud businesses often take years to become profitable, similar to Amazon and Google’s experiences.
Despite risks, the firm remains optimistic about Meta’s long-term prospects, emphasizing its investments in AI infrastructure and consumer products like VR headsets and AI glasses.