Jefferies analyst highlights Meta’s late entry into AI infrastructure as demand outstrips supply for cloud incumbents.
Meta Platforms is positioning itself to capture a share of the $2 trillion AI compute backlog, where cloud capacity is sold out and prices are rising. Analyst Brent Thill notes that Amazon, Google, and Microsoft dominate the market but face unmet demand, creating an opening for Meta’s enterprise AI push.
Thill estimates Amazon controls nearly 50% of cloud infrastructure after decades of investment. Meta must first secure small and mid-sized business customers before scaling competitively. The stock trades at a forward P/E of 18, with a consensus price target of $827 and 57 Buy or Strong Buy ratings.
Meta’s stock surged 7.56% on July 1 following the announcement but retreated 4.60% the next day as investors weighed the long-term challenge against established rivals.